H0649B0767A04145 SFL:CMD 11/16/15 #90 A04145

LEGISLATIVE REFERENCE BUREAU

AMENDMENTS TO HOUSE BILL NO. 649

Sponsor:

Printer's No . 767

1 Amend Bill, page 1, lines 2 through 5, by striking out

2 "providing for authorized interactive gaming and for" in line 2

3 and all of lines 3 through 5 and inserting

4 in general provisions, further providing for legislative intent 5 and for definitions; in Pennsylvania Gaming Control Board, 6 further providing for general and specific powers, for 7 licensed gaming entity application appeals from board, for 8 board minutes and records, for regulatory authority of board, 9 for slot machine license fee and for reports of board,

10 providing for fantasy sports report and further providing for 11 diversity goals of board; in licensees, further providing for 12 Category 3 slot machine license, for slot machine license 13 application, for supplier licenses, for manufacturer 14 licenses, for slot machine testing and certification 15 standards and for license renewals; in table games, further 16 providing for authorization to conduct table games, for table 17 game tournaments, for other financial transactions, for table 18 game device and associated equipment testing and 19 certification standards and for local share assessment; 20 providing for interactive gaming, for casino simulcasting and 21 for slot machines at nonprimary locations; in revenues, 22 further providing for establishment of State Gaming Fund and 23 net slot machine revenue distribution; in administration and 24 enforcement, further providing for responsibility and 25 authority of the Department of Revenue, for wagering on 26 credit, for compulsive and problem gambling program, 27 providing for child endangerment protection, further 28 providing for financial and employment interests, for 29 regulation requiring exclusion or ejection of certain 30 persons, for repeat offenders excludable from licensed gaming 31 facility, for list of persons self excluded from gaming 32 activities, for investigations and enforcement, for 33 prohibited acts and penalties and for liquor licenses at 34 licensed facilities and providing for casino liquor license; 35 in miscellaneous provisions, further providing for 36 appropriations; and making an editorial change.

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1 Amend Bill, page 1, lines 8 through 18; pages 2 through 20,

2 lines 1 through 30; page 21, lines 1 through 4; by striking out

3 all of said lines on said pages and inserting

4 Section 1. Section 1102 of Title 4 of the Pennsylvania 5 Consolidated Statutes is amended by adding paragraphs to read: 6 § 1102. Legislative intent. 7 The General Assembly recognizes the following public policy 8 purposes and declares that the following objectives of the 9 Commonwealth are to be served by this part:

10 * * * 11 (12.1) The continued growth and success of the 12 conunercial gaming industry in this Conunonwealth is dependent 13 upon a regulatory environment which promotes and fosters 14 technological advances and encourages the development and 15 delivery of innovative gaming products. 16 (12.2) It is also the intent of the General Assembly to 17 ensure the sustainability and competitiveness of the 18 commercial gaming industry in this Conunonwealth by 19 authorizing interactive gaming, casino simulcasting and the 20 operation of slot machines at nonprimary locations. 21 * * * 22 Section 2. The definitions of "associated equipment," "cash 23 equivalent," "cheat," "cheating or thieving device," 24 "commission" or "commissions," "conduct of gaming," "contest," 25 "counterfeit chip," "gaming employee," "gaming service 26 provider," "gaming school," "key employee," "licensed facility," 27 "manufacturer," "manufacturer license," "player," "progressive 28 payout," "progressive system," "slot machine," "supplier," 29 "supplier license 11 and "table game device" in section 1103 of 30 Title 4 are amended and the section is amended by adding 31 definitions to read: 32 § 1103. Definitions. 33 The following words and phrases when used in this part shall 34 have the meanings given to them in this section unless the 35 context clearly indicates otherwise: 36 * * * 37 "Associated equipment." Any equipment or mechanical, 38 electromechanical or electronic contrivance, component or 39 machine used in connection with slot machines or table games, 40 including linking devices which connect to progressive slot 41 machines and multistate wide-area progressive slot machines or 42 slot machines, replacement parts, equipment which affects the 43 proper reporting and counting of gross terminal revenue [and]-'-44 gross table game revenue and gross interactive gaming revenue, 45 computerized systems for controlling and monitoring slot 46 machines [or]L table games or interactive games, including, but 47 not limited to, the central control computer to which all slot 48 machines communicate [and]L devices for weighing or counting

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1 money[.] and interactive aamina devices and associated equipment 2 necessary for the operation of interactive games as approved by 3 the Pennsylvania Gaming Control Board. The term shall not 4 include count room equipment.

5 * * * 6 "Authorized interactive game." An interactive game approved 7 by regulation of the Pennsylvania Gaming Control Board to be 8 suitable for interactive gaming offered by an interactive gaming 9 certificate holder or other persons on behalf of a slot machine

10 licensee in accordance with Chapter 13B (relating to interactive 11 gaming). 12 * * * 13 "Cash equivalent." An asset that is readily convertible to 14 cash, including, but not limited to, any of the following: 15 (1) Chips or tokens. 16 (2) Travelers checks. 17 (3) Foreign currency and coin. 18 (4) Certified checks, cashier's checks and money orders. 19 (5) Personal checks or drafts. 20 (6) A negotiable instrument applied against credit 21 extended by a certificate holder, an interactive gaming 22 certificate holder, a holder of an interactive gaming license 23 or a financial institution. 24 (7) Any other instrument or representation of value that 25 the Pennsylvania Gaming Control Board deems a cash 26 equivalent. 27 11 Casino simulcasting." The simultaneous transmission of live 28 thoroughbred or harness horse race meetings from an in-State 29 sending racetrack, out-of-State sending racetrack or a satellite 30 facility, regardless of licensure status or whether the horse 31 race meetings originate within this Conunonwealth or any other 32 state or jurisdiction, to a simulcasting facility in this 33 Commonwealth by satellite devices, television cables, telephone 34 lines or any other telecommunications technology for the 35 purposes of conducting pari-mutuel wagering. 36 "Casino simulcasting permit" or "simulcasting oermit. 11 A 37 permit awarded by the board under section 13Cl2 (relating to 38 casino simulcasting permit) which authorizes a Category 2 39 licensed gaming entity to conduct casino simulcasting. 40 "Casino simulcasting permit holder." A Category 2 licensed 41 gaming entity that holds a casino simulcasting permit issued by 42 the board in accordance with section 13C12 (relating to casino 43 simulcasting permit) . 44 * * * 45 "Cheat." To defraud or steal from any player, slot machine 46 licensee or the Commonwealth while operating or playing a slot 47 machine [or]L table game[,] or authorized interactive game, 48 including causing, aiding, abetting or conspiring with another 49 person to do so. The term shall also mean to alter or causing, 50 aiding, abetting or conspiring with another person to alter the 51 elements of chance, method of selection or criteria which

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1 determine: 2 (1) The result of a slot machine game [or]. table game 3 or authorized interactive game. 4 (2) The amount or frequency of payment in a slot machine 5 game [or]L table game or authorized interactive game. 6 (3) The value of a wagering instrument. 7 (4) The value of a wagering credit. 8 The term does not include altering a slot machine, table game 9 device or associated equipment or interactive gaming device or

10 associated equipment for maintenance or repair with the approval 11 of a slot machine licensee. 12 "Cheating or thieving device." A device, software or 13 hardware used or possessed with the intent to be used to cheat 14 during the operation or play of any slot machine [or]L table 15 game or authorized interactive game. The term shall also include 16 any device used to alter a slot machine [or]L a table game 17 device or associated equipment, an authorized interactive game 18 or interactive gaming device or associated equipment without the 19 slot machine licensee's approval. 20 * * * 21 ["Commission" or "commissions."] "Commission," "commissions" 22 or "appropriate commission . " The State Horse Racing Commission 23 or the State Harness Racing Commission, or both as the context 24 may require. 25 * * * 26 "Conduct of gaming." The licensed placement, operation and 27 play of slot machines [and]L table games, interactive gaming and 28 casino simulcasting under this part, as authorized and approved 29 by the Pennsylvania Gaming Control Board. 30 "Contest." A slot machine, table game or authorized 31 interactive game competition among players for cash, cash 32 equivalents or prizes. 33 * * * 34 "Counterfeit chip . " Any object or thing that is : 35 (1) used or intended to be used to play a table game at 36 a certificate holder's licensed facility and which was not 37 issued by that certificate holder for such use; [or] 38 (2) presented to a certificate holder for redemption if 39 the object was not issued by the certificate holder[.]L 40 (3) used or intended to be used to play an authorized 41 interactive game which was not approved by the interactive 42 gaming certificate holder for such use; or 43 (4) presented during play of an authorized interactive 44 game for redemption, if the object or thing was not issued by 45 the interactive gaming certificate holder or other person on 46 behalf of an interactive gaming certificate holder. 47 48 49 50 51

* * * "Gaming

including, (1) ( 2)

employee." Any employee of a slot machine licensee, but not limited to : Cashiers. Change personnel.

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1 2 3

(3) Count room personnel. (4) Slot attendants. (5) Hosts or other individuals authorized to extend

4 complimentary services, including employees performing S functions similar to those performed by a gaming junket 6 representative . 7 (6) Machine mechanics, computer machine technicians or 8 table game device technicians. 9 (7) Security personnel.

10 (8) Surveillance personnel. 11 (9) Promotional play supervisors, credit supervisors, 12 pit supervisors, cashier supervisors, shift supervisors, 13 table game managers and assistant managers and other 14 supervisors and managers, except for those specifically 15 identified in this part as key employees. 16 (10) Boxmen. 17 (11) Dealers or croupiers . 18 (12) Floormen. 19 (13) Personnel authorized to issue promotional play . 20 (14) Personnel authorized to issue credit . 21 The term shall include employees of a person holding a 22 supplier's license whose duties are directly involved with the 23 repair or distribution of slot machines, table game devices or 24 associated equipment, interactive gaming devices or associated 25 equipment or casino simulcasting technology and equipment sold 26 or provided to a licensed facility within this Commonwealth as 27 determined by the Pennsylvania Gaming Control Board. The term 28 shall further include employees of a person authorized by the 29 board to supply goods and services related to interactive gaming 30 and casino simulcasting or any subcontractor or an employee of a 31 subcontractor that supplies interactive gaming devices or 32 associated equipment to a holder of an interactive gaming 33 certificate or interactive gaming license or that supplies 34 casino simulcasting technology or equipment to a Category 2 slot 35 machine licensee . The term does not include bartenders, cocktail 36 servers or other persons engaged solely in preparing or serving 37 food or beverages, clerical or secretarial personnel , parking 38 attendants, janitorial, stage, sound and light technicians and 39 other nongaming personnel as determined by the board . 40 * * * 41 "Gaming school." Any educational institution approved by the 42 Department of Education as an accredited college or university, 43 community college, Pennsylvania private licensed school or its 44 equivalent and whose curriculum guidelines are approved by the 45 Department of Labor and Industry to provide education and job 46 training related to employment opportunities associated with 47 slot machines [or]L table games, casino simulcasting or 48 interactive gaming, including slot machine, table game device 49 and associated equipment maintenance and repair and interactive SO gaming devices and associated equipment maintenance and repair. 51 "Gaming service provider." A person that is not required to

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1 be licensed as a manufacturer, supplier, management company or 2 gaming junket enterprise and: 3 (1) provides goods or services, including, but not 4 limited to, count room equipment, to a slot machine licensee 5 or an applicant for a slot machine license for use in the 6 operation of a licensed facility; or 7 (2) provides goods or services at a licensed facility.

8 * * * 9 "Gross interactive gaming revenue." The total of all cash or

10 cash equivalent wagers paid by registered players to an 11 interactive gaming certificate holder in consideration for the 12 play of authorized interactive games, minus: 13 (1) The total of cash or cash equivalents paid out to 14 registered players as winnings. 15 (2) The cash equivalent value of any personal property 16 or other noncash items or things of value included in a 17 drawing, contest or tournament and distributed to registered 18 players as a result of playing authorized interactive games. 19 (3) Any administrative fee, operational fee or tax paid 20 to another state or jurisdiction pursuant to an interactive 21 gaming reciprocal agreement. 22 Amounts deposited with an interactive gaming certificate holder 23 for purposes of interactive gaming and amounts taken in 24 fraudulent acts perpetrated against an interactive gaming 25 certificate holder for which the interactive gaming certificate 26 holder is not reimbursed may not be considered to have been paid 27 t0 the interactive gaming certificate holder for purposes of 28 calculating gross interactive gaming revenue. 29 * * * 30 "Hybrid slot machine." A slot machine in which a combination 31 of the skill of the player and chance affects the outcome of the 32 game. 33 * * * 34 "In-State sending track." A racetrack within this 35 Commonwealth which is operated by a licensed corporation and is 36 permitted to conduct casino simulcasting.

37 * * * 38 "Interactive game." Any gambling game offered through the 39 use of communications technology that allows a person, utilizing 40 money, checks, electronic checks, electronic transfers of money, 41 credit cards or any other instrumentality to transmit electronic 42 information to assist in the placement of a bet or wager and 43 corresponding information related to the display of the game, 44 game outcomes or other similar information. The term shall not 45 include: 46 (1) A lottery game or Internet instant game as defined 47 in the act of August 26, 1971 (P.L.351, No.91), known as the 48 State Lottery Law. 49 (2) Nongambling games that do not otherwise require a 50 license under the laws of this Commonwealth. 51 For the purposes of this definition, the term "communications

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1 technology" shall mean any method used and the components 2 employed to facilitate the transmission and receipt of 3 information, includinq transmission and reception by systems 4 using wire, wireless, cable, radio, microware, liqht, fiber s optics, satellite or computer data networks, including the 6 Internet and intranets, as approved by the board. 7 "Interactive gaming." The placinq of bets or wagers with an 8 interactive gaming certificate holder or interactive gaming 9 licensee located in this Commonwealth using a computer network

10 of both Federal and non-Federal interoperable packet switched 11 data networks through which an interactive gaming certificate 12 holder may offer authorized interactive games to registered 13 players. 14 "Interactive gaming account." The formal, electronic system 15 implemented by an interactive gaming certificate holder to 16 record the balance of a registered player's debits, credits and 17 other activity related to interactive gaming. 18 "Interactive gaming account agreement." An agreement entered 19 into between an interactive gaming certificate holder or other 20 person on behalf of an interactive gaming certificate holder and 21 an individual which governs the terms and conditions of the 22 individual's interactive gaming account and the use of the 23 Internet for purposes of placing bets or wagers on authorized 24 interactive games operated by an interactive gaming certificate 25 holder or other person on behalf of an interactive qaming 26 certificate holder in this Commonwealth. 27 "Interactive gaming agreement." An agreement entered into by 28 or between an interactive gaming certificate holder and an 29 interactive gaming operator related to the offering or operation 30 of interactive gaming or an interactive gaming system on behalf 31 of an interactive gaming certificate holder. 32 "Interactive gaming certificate." The authorization issued 33 to a slot machine licensee by the Pennsylvania Gaming Control 34 Board authorizing the operation and conduct of interactive 35 gaming bv a slot machine licensee or other person on behalf of a 36 slot machine licensee in accordance with Chapter 13B (relating 37 to interactive gaming). 38 "Interactive gaming certificate holder." A slot machine 39 licensee that has been granted authorization by the Pennsylvania 40 Gaming Control Board to operate authorized interactive games in 41 accordance with Chapter 13B (relating to interactive gaming) . 42 "Interactive gaming device." All hardware and software and 43 other technology, equipment or device of any kind as determined 44 by the Pennsylvania Gaming Control Board to be necessary for the 4·5 conduct of authorized interactive games. 46 "Interactive gaming license. 11 A license issued to a person 47 by the Pennsylvania Gaming Control Board under Chapter 13B 48 (relating to interactive gaming). 49 "Interactive gaming operator." A oerson, including an so affiliate of a slot machine licensee, authorized by the 51 Pennsylvania Gaming Control Board to operate interactive gaming

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1 or an interactive gaming svstem on behalf of an interactive 2 gaming certificate holder . 3 "Interactive gaming platform. " The combination of hardware 4 and software or other technology designed and used to manage, 5 conduct and record interactive games and the bets or wagers 6 associated with interactive games, as approved by the 7 Pennsylvania Gaming Control Board. The term shall include any 8 emerging or new technology deployed to advance the conduct and 9 operation of interactive gaming, as approved through regulation

10 by the Pennsylvania Gaming Control Board . 11 "Interactive gaming reciprocal agreement." An agreement 12 negotiated by the Pennsylvania Gaming Control Board on behalf of 13 the Commonwealth with the authorized agency of one or more 14 states or jurisdictions where interactive gaming is legally 15 authorized which will permit the conduct of interactive gaming 16 between interactive gaming certificate holders in this 17 Commonwealth and licensed gaming entities in the states or 18 jurisdictions that are parties to the agreement. 19 "Interactive gaming restricted area." Any room or area , as 20 approved by the Pennsylvania Gaming Control Board, used by an 21 interactive gaming certificate holder to manage, control and 22 operate interactive gaming, including, where approved by the 23 board, redundancy facilities . 24 "Interactive gaming skin or skins." The portal or portals to 25 an interactive gaming platform or Internet website through which 26 authorized interactive games are made available to registered 27 players by an interactive gaming certificate holder or other 28 person on behalf of an interactive gaming certificate holder in 29 this Commonwealth or players in any other state or jurisdiction 30 in which an interactive gaming reciprocal agreement has been 31 entered . 32 "Interactive gaming system." All hardware, software and 33 communications that comprise a type of server-based gaming 34 system for the purpose of offering authorized interactive games. 35 "Internet website . 11 The interactive gaming skin or skins or 36 Internet portal or portals through which an interactive gaming 37 certificate holder or other person makes interactive games 38 available for play.

39 * * * 40 "Key employee." Any individual who is employed in a director 41 or department head capacity and who is empowered to make 42 discretionary decisions that regulate slot machine or table game 43 operations, interactive gaming operations or casino 44 simulcasting, including the general manager and assistant 45 manager of the licensed facility, director of slot operations, 46 director of table game operations , director of interactive 47 gaming, director of casino simulcasting, director of cage and/or 48 credit operations, director of surveillance, director of 49 marketing, director of management information systems, director SO of interactive gaming system programs or other similar job 51 classifications associated with interactive gaming and casino

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1 simulcasting, persons who manage, control or administer 2 interactive games and casino simulcasting or the bets and wagers 3 associated with interactive games and casino simulcastinq, 4 director of security, comptroller and any employee who is not 5 otherwise designated as a gaming employee and who supervises the 6 operations of these departments or to whom these department 7 directors or department heads report and such other positions 8 not otherwise designated or defined under this part which the 9 Pennsylvania Gaming Control Board shall determine based on

10 detailed analyses of job descriptions as provided in the 11 internal controls of the licensee as approved by the 12 Pennsylvania Gaming Control Board. All other gaming employees 13 unless otherwise designated by the Pennsylvania Gaming Control 14 Board shall be classified as non-key employees. 15 * * * 16 "Licensed corporation . " A licensed racing entity. 17 * * * 18 "Licensed facility . " The physical land-based location at 19 which a licensed gaming entity is authorized to place and 20 operate slot machines and, if authorized by the Pennsylvania 21 Gaming Control Board under Chapter 13A (relating to table 22 games) , to conduct table games and if authorized under Chapter 23 13B (relating to interactive gaming), to conduct interactive 24 gaming. The term includes any: 25 (1) area of a licensed racetrack at which a slot machine 26 licensee was previously authorized pursuant to section 27 1207(17) (relating to regulatory authority of board) to 28 operate slot machines prior to the effective date of this 29 paragraph; 30 (2) board-approved interim facility or temporary 31 facility; [and] 32 (3) area of a hotel which the Pennsylvania Gaming 33 Control Board determines is suitable to conduct table 3 4 games [ . ] l.. 35 (4) area of a Category 2 licensed facility where casino 36 simulcasting is conducted, as approved by the Pennsylvania 37 Gaming Control Board; and 38 (5) for the purposes of Chapter 130 (relating to slot 39 machines at nonprimary locations), the area of a nonprimary 40 location in which a Cateqory 1 slot machine licensee is 41 authorized to place and make slot machines available for 42 play. 43 The term shall not include a redundancy facility or an 44 interactive gaming restricted area which is not located on the 45 premises of a licensed facility as approved by the Pennsylvania 46 Gaming Control Board and which is maintained and operated by an 47 interactive gaming certificate holder in connection with 48 interactive gaming or casino simulcasting. 49 * * * SO 11 Manufacturer. 11 A person who manufactures, builds, rebuilds, 51 fabricates, assembles, produces, programs, designs or otherwise

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1 makes modifications to any slot machine, table game device or 2 associated equipment or authorized interacti ve games for use or 3 play of slot machines [or]L table games or authorized 4 interactive games in this Commonwealth for gaming purposes. s "Manufacturer license. " A license issued by the Pennsylvania 6 Gaming Control Board authorizing a manufacturer to manufacture 7 or produce slot machines , table game devices or associated 8 equipment or interactive gaming devices or associated equipment 9 for use in this Commonwealth for gaming purposes .

10 * * * 11 11Multistate wide-area progressive slot machine svstem." The 12 linking of slot machines located in this Commonwealt h with slot 13 machines located in one or more states or jurisdictions in which 14 the Pennsylvania Gaming Control Board has entered into an 15 interactive reciprocal agreement, as appr oved by the 16 Pennsylvania Gaming Control Board. 17 * * * 18 "Nonprimary location permit. " The permit issued to a 19 Category 1 slot machine licensee authorizing the placement and 20 operation of slot machines at a nonprimary location in 21 accordance with Chapter 130 (relating to slot machines at 22 nonprimary locations) . 23 11 Nonprimary location permit holder." A Category 1 slot 24 machine licensee that has been approved for and issued a permit 25 to place and make slot machines available for play at a 26 nonprimary location in accordance with Chapter 130 (relating to 27 slot machines at nonprimary locations) . 28 * * * 29 110ut -of-State sending track." An interstate or international 30 racetrack in a state or jurisdiction other than this 31 Commonwealth which is equipped to conduct casino simulcasting 32 and the operator of which is lawfully permitted to conduct horse 33 race meetings and to provide simulcast horse races to Category 2 34 licensed facilities in this Commonwealth. 35 * * * 36 "Player . " An indivi dual wagering cash, a cash equivalent or 37 other thing of value in the play or operation of a slot machine 38 [or] , an authorized interactive game or a table game, including 39 during a contest or tournament, the play or operation of which 40 may deliver or entitle the individual playing or operating the 41 slot machine [or] , authorized interactive game or table game to 42 receive cash, a cash equivalent or other thing of value from 43 another player or a slot machine licensee. 44 * * * 45 "Progressive payout." A slot machine wager payout that 46 increases in a monetary amount based on the amounts wagered in a 47 progressi ve system, including a multistate wide-area progressive 48 slot machine system . 49 "Progressive system . " A computerized system linking slot so machines in one or more licensed facilities within this 51 Commonwealth and offering one or more common progressive payouts

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1 based on the amounts wagered. The term shall include the linking 2 of slot machines in a licensed facility in this Commonwealth 3 with a multistate wide-area progressive system operated by 4 gaming entities in one or more states or jurisdictions.

5 * * * 6 "Redundancy facilities." Any and all rooms or areas used by 7 a slot machine licensee for emergency backup, redundancy or a secondary operations attendant to interactive gaming or casino 9 simulcasting as approved by the Pennsylvania Gaming Control

10 Board. 11 "Registered player." An individual who has entered into an 12 interactive gaming account agreement with an interactive gaming 13 certificate holder. 14 * * * 15 "Simulcast horse race. 11 A thoroughbred or harness horse race 16 meeting conducted at a racetrack, whether within or outside this 17 Commonwealth, which is simultaneously transmitted by an approved 18 telecommunications technology to racetracks or simulcasting 19 facilities in this Commonwealth. 20 "Simulcasting facility." An area of a Category 2 licensed 21 facility established and maintained by a Category 2 slot machine 22 licensee for the conduct of casino simulcasting in accordance 23 with Chapter 13C (relating to casino simulcasting) , the Race 24 Horse Industry Reform Act and regulations of the board and the 25 commissions promulgated pursuant to Chapter 13C and the Race 26 Horse Industry Reform Act. 27 "Skill." The knowledge, dexterity, adroitness, acumen or 28 other mental skill of an individual. 29 "Skill slot machine." A slot machine in which the skill of 30 the player, rather than the elements of chance, is the 31 predominant factor in affecting the outcome of the game as 32 determined over a period of continuous play. 33 "Slot machine." Includes: 34 ill Any mechanical, electrical or computerized 35 contrivance, terminal, machine or other device approved by 36 the Pennsylvania Gaming Control Board which, upon insertion 37 of a coin, bill, ticket, token or similar object therein or 38 upon payment of any consideration whatsoever, including the 39 use of any electronic payment system except a credit card or 40 debit card, is available to play or operate, the play or 41 operation of which, whether by reason of skill or application 42 of the element of chance or both, may deliver or entitle the 43 person or persons playing or operating the contrivance, 44 terminal, machine or other device to receive cash, billets, 45 tickets, tokens or electronic credits to be exchanged for 46 cash or to receive merchandise or anything of value 47 whatsoever, whether the payoff is made automatically from the 48 machine or manually. A slot machine: 49 {(1)] ..LlJ.. May utilize spinning reels or video 50 displays or both. 51 [(2)] l.!il. May or may not dispense coins, tickets or

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1 tokens to winning patrons. 2 [(3}] (iii) May use an electronic credit system for 3 receiving wagers and making payouts. 4 l1.l. The term shall include [associated equipment] all of 5 the following: 6 (i) Associated equipment necessary to conduct the 7 operation of the contrivance, terminal, machine or other 8 device. 9 (ii) A skill slot machine, hybrid slot machine and

10 the devices or associated equipment necessary to conduct 11 the operation of a skill slot machine or hybrid slot 12 machine. 13 (iii) A multistate wide-area oroqressive slot 14 machine and devices and associated equipment as defined 15 by the board through regulations. 16 * * * 17 "Supplier." A person that sells, leases, offers or otherwise 18 provides, distributes or services any slot machine, table game 19 device or associated equipment, interactive gaming device or 20 associated equipment, casino simulcasting technology or 21 equipment for use or play of slot machines [or]~ table games.L...-22 interactive games or to participate in casino simulcasting in 23 this Commonwealth. 24 "Supplier license." A license issued by the Pennsylvania 25 Gaming Control Board authorizing a supplier to provide products 26 or services related to slot machines, table game devices or 27 associated equipment, interactive gaming device or associated 28 equipment or casino simulcasting technology or equipment to slot 29 machine licensees for use in this Commonwealth for gaming 30 purposes. 31 "Table game device." Includes gaming tables, cards, dice, 32 chips, shufflers, tiles, dominoes, wheels[, drop boxes] or any 33 mechanical, electrical or computerized contrivance, terminal, 34 machine or other device, apparatus, equipment or supplies 35 approved by the Pennsylvania Gaming Control Board and used to 36 conduct a table game. 37 * * * 38 Section 3. Section 1202 (a} (1) and (b) (20) and (23) of Title 39 4 are amended and subsection (b) is amended by adding paragraphs 40 to read: 41 § 1202. General and specific powers. 42 (a) General powers.--43 (1) The board shall have general and sole regulatory 44 authority over the conduct of gaming (or] and related 45 activities as described in this part. The board shall ensure 46 the integrity of the acquisition and operation of slot 47 machines, table games, table game devices and associated 48 equipment and authorized interactive games and interactive 49 gaming devices and shall have sole regulatory authority over 50 every aspect of the authorization, operation and play of slot 51 machines [and] , including the operation of slot machines at

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1 nonprimary locations, table games and interactive gaming 2 devices and associated equipment. 3 * * * 4 (b) Specific powers.--The board shall have the specific 5 power and duty: 6 * * * 7 (12 . 2) At its discretion, to award, revoke, suspend, 8 condition or deny an interactive gaming certificate or an 9 interactive gaming license in accordance with Chapter 13B

10 (relating to interactive gaming) . 11 (12.3) To award, revoke, suspend, condition or deny a 12 casino simulcasting permit in accordance with Chapter 13C 13 (relating to casino simulcasting) . 14 (12.4) At its discretion, to award, revoke, suspend, 15 condition or deny authorization for the placement and 16 operation of slot machines at a nonprimary location in 17 accordance with Chapter 13D (relating to slot machines at 18 nonprimary locations) . 19 * * * 20 (20) In addition to the power of the board regarding 21 license and permit applicants, to determine at its discretion 22 the suitability of any person who furnishes or seeks to 23 furnish to a slot machine licensee directly or indirectly any 24 goods, services or property related to slot machines, table 25 games, table game devices or associated equipment..&...-26 interactive gaming, interactive gaming devices and associated 27 equipment or casino simulcasting technology and equipment or 28 through any arrangements under which that person receives 29 payment based directly or indirectly on earnings, profits or 30 receipts from the slot machines, table games, table game 31 devices and associated equipment, interactive gaming, 32 interactive gaming devices and associated equipment or casino 33 simulcasting technology and equipment. The board may require 34 any such person to comply with the requirements of this part 35 and the regulations of the board and may prohibit the person 36 from furnishing the goods, services or property. 37 * * * 38 (23) The board shall not approve an application for or 39 issue or renew a license, certificate, registration or permit 40 unless it is satisfied that the applicant has demonstrated by 41 clear and convincing evidence that the applicant is a person 42 of good character, honesty and integrity and is a person 43 whose prior activities, criminal record, if any, reputation, 44 habits and associations do not pose a threat to the public 45 interest or the effective regulation and control of slot 46 machine [or] , including the operation of slot machines at 47 nonprimary locations, table game operations, interactive 48 gaming operations or casino simulcasting or create or enhance 49 the danger of unsuitable, unfair or illegal practices, 50 methods and activities in the conduct of slot machine or 51 table game operations, interactive gaming operations, casino

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1 simulcasting or the carrying on of the business and financial 2 arrangements incidental thereto. 3 * * * 4 (27.2) Within six months of the effective date of this 5 section. to publish on the board's Internet website a 6 complete list of all slot machine licensees who filed a 7 petition seeking authorization to conduct interactive gaming 8 and the status of each petition or interactive gaming 9 certificate.

10 * * * 11 (35) To review detailed site plans identifying the 12 interactive gaming restricted area or room where a slot 13 machine licensee proposes to manage, administer or control 14 interactive gaming operations to determine the adequacy of 15 the proposed internal and external security and proposed 16 surveillance measures. 17 (36) To reauire each slot machine licensee that holds an 18 interactive gaming certificate to provide on a quarterly 19 basis the following information with respect to interactive 20 gaming: 21 (i) the name of any person, entity or firm to whom 22 anv payment, remuneration or other benefit or thing of 23 value has been made or conferred for professional 24 services, including. but not limited to, interactive 25 gaming system operations or management. legal. consulting 26 and lobbying services; 27 (ii) the amount or value of the payments, 28 remuneration, benefit or thing of value; 29 (iii) the date on which the payments, remuneration. 30 benefit or thing of value was submitted; and 31 (iv) the reason or purpose for the procurement of 32 the services. 33 (37) To review and approve detailed site and 34 architectural plans identifying the area of a Category 2 35 licensed facility where the Category 2 slot machine licensee 36 proposes to manage. control and administer casino 37 simulcasting in order to determine the adequacy of proposed 38 internal and external controls, security and surveillance 39 measures. 40 (38) To review and approve detailed site and 41 architectural plans identifying the area of a nonprimary 42 location where a Category 1 slot machine licensee proposes to 43 place and make slot machines available for play in accordance 44 with Chapter 13D in order to determine the adequacy of 45 proposed internal and external controls, security and 46 proposed surveillance measures. 47 (39) To review and approve detailed site and 48 architectural plans identifying the area of a licensed 49 facility where a slot machine licensee proposes to place and so make multistate wide-area progressive slot machines, skill 51 slot machines or hybrid slot machines available for play in

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1 order to determine the adequacy of proposed internal and 2 external controls, security and proposed surveillance 3 measures. 4 Section 4. Sections 1204 and 1206(f) (1) of Title 4 are s amended to read: 6 § 1204. Licensed gaming entity application appeals from board. 7 The Supreme Court of Pennsylvania shall be vested with 8 exclusive appellate jurisdiction to consider appeals of any 9 final order, determination or decision of the board involving

10 the approval, issuance, denial or conditioning of a slot machine 11 license [or]. the award, denial or conditioning of a table game 12 operation certificate[.] or the award, denial or conditioning of 13 an interactive gaming certificate, a casino simulcasting permit, 14 a nonprimary location permit or an airport gaming operation 15 certificate. Notwithstanding the provisions of 2 Pa.C.S. Ch. 7 16 Subch. A (relating to judicial review of Commonwealth agency 17 action) and 42 Pa.c.s. § 763 (relating to direct appeals from 18 government agencies), the Supreme Court shall affirm all final 19 orders, determinations or decisions of the board involving the 20 approval, issuance, denial or conditioning of a slot machine 21 license [or]~ the award, denial or conditioning of a table game 22 operation certificate or the award, denial or conditioning of an 23 interactive gaming certificate, a casino simulcasting permit or 24 a nonprimary location permit, unless it shall find that the 25 board committed an error of law or that the order, determination 26 or decision of the board was arbitrary and there was a 27 capricious disregard of the evidence. 28 § 1206. Board minutes and records. 29 * * * 30 (f) Confidentiality of information.--31 (1) The following information submitted by an applicant, 32 permittee or licensee pursuant to section 1310(a) (relating 33 to slot machine license application character requirements) 34 [or]. 1308(a.1) (relating to applications for license or 35 permit), 13812 (relating to interactive gaming certificate 36 required and content of petition), 13C12 (relating to casino 37 simulcasting permit), 13Dll (relating to application for 38 nonprimary location permit) or 13E12 (relating to 39 application) or obtained by the board or the bureau as part 40 of a background or other investigation from any source shall 41 be confidential and withheld from public disclosure: 42 (i) All information relating to character, honesty 43 and integrity, including family, habits, reputation, 44 history of criminal activity, business activities, 45 financial affairs and business, professional and personal 46 associations submitted under section 1310(a) or 1308(a.1) 47 or otherwise obtained by the board or the bureau. 48 (ii) Nonpublic personal information, including home 49 addresses, telephone numbers and other personal contact so information, Social Security numbers, educational 51 records, memberships, medical records, tax returns and

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1 declarations , actual or proposed compensation, financial 2 account records , creditworthiness or financial condition 3 relating to an applicant, licensee [or]. permittee.L...-4 interactive gaming certificate holder, casino 5 simulcasting permit holder, nonprimary location permit 6 holder or the immediate family thereof. 7 (iii) Information relating to proprietary 8 information, trade secrets, patents or exclusive 9 licenses , architectural and engineering plans and

10 information relating to competitive marketing materials 11 and strategies, which may include customer-identifying 12 information or customer prospects for services subject to 13 competition. 14 (iv) Security information, including risk prevention 15 plans, detection and countermeasures, location of count 16 rooms, location of interactive gaming restricted areas 17 and redundancy facilities, emergency management plans, 18 security and surveillance plans, equipment and usage 19 protocols and theft and fraud prevention plans and 20 countermeasures . 21 (v) Information with respect to which there is a 22 reasonable possibility that public release or inspection 23 of the information would constitute an unwarranted 24 invasion into personal privacy of any individual as 25 determined by the board. 26 (vi) Records of an applicant or licensee not 27 required to be filed with the Securities and Exchange 28 Commission by issuers that either have securities 29 registered under section 12 of the Securities Exchange 30 Act of 1934 (48 Stat. 881, 15 U.S.C. § 781) or are 31 required to file reports under section 15(d) of the 32 Securities Exchange Act of 1934 (48 Stat. 881, 15 U.S.C. 33 § 780) . 34 (vii) Records considered nonpublic matters or 35 information by the Securities and Exchange Commission as 36 provided by 17 CFR 200.80 {relating to commission records 37 and information) . 38 (viii) Any financial information deemed confidential 39 by the board upon a showing of good cause by the 40 applicant or licensee. 41 * * * 42 Section 5. Section 1207{1), (3), (4), (5), (6), (8), (9), 43 (10) and (21) of Title 4 are amended and the section is amended 44 by adding paragraphs to read: 45 § 1207 . Regulatory authority of board. 46 The board shall have the power and its duties shall be to: 47 (1) Deny, deny the renewal, revoke, condition or suspend 48 any license [or]. permit, certificate, registration or other 49 authorizations provided for in this part if the board finds 50 in its sole discretion that a licensee [or]k permittee or 51 interactive gaming certificate holder under this part, or its

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1 officers, employees or agents, including any interactive 2 gaming operator. have furnished false or misleading 3 information to the board or failed to comply with the 4 provisions of this part or the rules and regulations of the 5 board and that it would be in the public interest to deny, 6 deny the renewal, revoke, condition or suspend the license 7 [or]. permit, certificate, registration or other 8 authorizations. 9 * * *

10 (3) Prescribe and require periodic financial reporting 11 and internal control requirements for all licensed entities.L..-12 including, in the case of interactive gaming, all interactive 13 gaming affiliates and interactive gaming operators. 14 (4) Require that each licensed entity, including, in the 15 case of interactive gaming, each interactive gaming operator, 16 provide to the board its audited annual financial statements, 17 with such additional detail as the board from time to time 18 shall require, which information shall be submitted not later 19 than 90 days after the end of the licensee's fiscal year. 20 (5) Prescribe the procedures to be followed by slot 21 machine licensees for any financial event that occurs in the 22 operation and play of slot machines [or]. table games"-23 authorized interactive games or casino simulcasting. 24 (6) Prescribe criteria and conditions for the operation 25 of slot machine progressive systems, including multistate 26 wide-area progressive slot machine systems. A wide area 27 progressive slot system shall be collectively administered by 28 participating slot machine licensees in accordance with the 29 terms of a written agreement executed by each participating 30 slot machine licensee and, in the case of a multistate wide-31 area progressive slot machine system, in accordance with the 32 terms of an agreement executed by the slot machine licensee 33 and authorized gaming entities in other states or 34 jurisdictions, as approved by the board. 35 (6.1) Collaborate with the appropriate gaming 36 authorities in other states or jurisdictions to facilitate 37 the establishment of multistate wide-area progressive slot 38 machine systems by slot machine licensees in this 39 Commonwealth and, if determined necessary, enter into the 40 necessary agreements with such other states or jurisdictions 41 as necessary for the operation of multistate wide-area 42 progressive slot machine systems by slot machine licensees in 43 this Commonwealth. 44 * * * 45 (7.2) Enforce prescribed hours for the operation of 46 authorized interactive games so that an interactive gaming 47 certificate holder may conduct interactive games on anv dav 48 during the year in order to meet the needs of registered 49 players or to meet competition. 50 (7.3) In consultation with the commissions, enforce 51 prescribed hours of operation of casino simulcasting by

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1 Category 2 slot machine licensees. 2 (8) Require that each licensed gaming entity prohibit 3 persons under 21 years of age from operating or using slot 4 machines [or]L playing table games or participating in 5 interactive gaming and casino simulcasting. 6 (9) Establish procedures for the inspection and 7 certification of compliance of each slot machine, table game, a table game device and associated equipment, interactive 9 gaming, interactive gaming device and associated equipment

10 and casino simulcasting technology and equipment prior to 11 being placed into use by a slot machine licensee. 12 (10) Require that no slot machine or authorized 13 interactive game that replicates the play of a slot machine 14 may be set to pay out less than the theoretical payout 15 percentage, which shall be no less than 85%, as specifically 16 approved by the board. The board shall adopt regulations that 17 define the theoretical payout percentage of a slot machine 18 game based on the total value of the jackpots expected to be 19 paid by a play or a slot machine game divided by the total 20 value of slot machine wagers expected to be made on that play 21 or slot machine game during the same portion of the game 22 cycle. In so doing, the board shall decide whether the 23 calculation shall include the entire cycle of a slot machine 24 game or any portion thereof. Except that, in the case of 25 skill slot machines and hybrid slot machines, the board shall 26 adopt regulations to define the player's win percentage based 27 on the relative skill of the player or the combination of 28 skill and the elements of chance of the game. In the case of 29 multistate wide-area progressive slot machines, the 30 theoretical payout percentage or a player's win percentage 31 shall be as set forth in the agreement, as approved by the 32 board. 33 * * * 34 (21) Authorize, in its discretion, a slot machine 35 licensee to conduct slot machine contests or tournamentsL-36 table game tournaments or contests in accordance with section 37 13A22.1 (relating to table game tournaments) or interactive 38 gaming contests or tournaments and adopt regulations 39 governing the conduct of such tournaments and contests. 40 (21.1) Authorize. in its discretion, a slot machine 41 licensee to place and make multistate wide-area progressive 42 slot machines, skill slot machines or hybrid slot machines 43 available for play at licensed facilities. 44 (21.2) Adopt and promulgate regulations to govern the 45 operation and placement of skill slot machines and hybrid 46 slot machines by slot machine licensees at licensed 47 facilities. In order to facilitate the operation and 48 placement of skill and hybrid slot machines at licensed 49 facilities pursuant to this paragraph, regulations 50 promulgated by the board shall be deemed temporary 51 regulations which shall expire two years after the date of

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1 publication in the Pennsylvania Bulletin. 2 (22) License, regulate, investigate and take any other 3 action determined necessary regar ding all aspects of 4 interactive gaming, casino simulcasting and the operation of 5 slot machines at nonprimary locations. 6 (23) Define and limit the areas of operation and the 7 rules of authorized interactive games, including odds, 8 devices and associated equipment permitted and the method of 9 operation of authorized interactive games, interactive gaming

10 devices and associated equipment. 11 (24) Require, as applicable, that all wagering offered 12 through interactive gaming display online the permissible 13 minimum and maximum wagers associated with each authorized 14 interactive game. 15 (25) Ensure, in consultation with the commissions, that 16 the wagering at nonprimary locations is conducted in 17 conformance with the pari-mutuel system of wagering regulated 18 by the commissions pursuant to the Race Horse Industry Reform 19 Act. 20 (26) Negotiate and enter into interactive gaming 21 reciprocal agreements on behalf of the Commonwealth to govern 22 the conduct of interactive gaming between interactive gaming 23 certificate holders in this Commonwealth and gaming entities 24 of other states or jurisdictions. Notwithstanding any 25 provision of this part, wagers may be accepted in accordance 26 with this part and regulations of the board from persons in 27 other states or jurisdictions if the board determines that 28 such wagering is not inconsistent with Federal law or the law 29 of the state or jurisdiction, including a foreign 30 jurisdiction, in which the person is located, or such 31 wagering is conducted pursuant to an interactive gaming 32 reciprocal agreement to which this Commonwealth is a party 33 that is not inconsistent with Federal law. The board is 34 hereby designated as the agency of the Commonwealth with the 35 sole power and authority to enter into interactive gaming 36 reciprocal agreements with other states or jurisdictions. 37 (27) Enter into agreements with other states for the 38 operation of multistate wide-area progressive slot machine 39 systems . 40 Section 5.1. Section 1209(b) of Title 4 is amended to read: 41 § 1209 . Slot machine license fee . 42 * * * 43 (b) Term . --A slot machine license, after payment of the fee, 44 shall be in effect unless suspended , revoked or not renewed by 45 the board upon good cause consistent with the license 46 requirements as provided for in this part. Slot machine 47 licensees shall be required to update the information in their 48 initial applications annually, and the license of a licensee in 49 good standing shall be renewed every [three] five years. Nothing SO in this subsection shall relieve a licensee of the affirmative 51 duty to notify the board of any changes relating to the status

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1 of its license or to any other information contained in the 2 application materials on file with the board. As to the renewal 3 of a license, except as required in subsection (f) (3), no 4 additional license fee pursuant to subsection (a) shall be s required. 6 * * * 7 Section 6. Section 1211 of Title 4 is amended by adding 8 subsections to read: 9 § 1211. Reports of board.

10 * * * 11 (a.4} Interactive gaming reporting requirements.--12 (1) No later than 12 months after the effective date of 13 Chapter 13B (relating to interactive gaming) and every year 14 thereafter, the annual report submitted by the board in 15 accordance with subsection (a} shall include information on 16 the conduct of interactive games as follows: 17 (i} Total gross interactive gaming revenue. 18 (ii) The number and win by type of authorized 19 interactive game at each licensed facility conducting 20 interactive gaming during the previous year. 21 (iii} All taxes, fees, fines and other revenue 22 collected and, where appropriate, revenue disbursed 23 during the previous year. The department shall 24 collaborate with the board to carry out the requirements 25 of this subparagraph. 26 (2} The board may require interactive gaming certificate 27 holders and other persons involved in the operation of 28 interactive gaming on behalf of a slot machine licensee to 29 provide information to the board to assist in the preparation 30 of the report. 31 * * * 32 (d.1} Impact of interactive gaming, annual reoort.--One vear 33 after the commencement of interactive gaming at all licensed 34 facilities in this Commonwealth, an annual report shall be 35 prepared and distributed to the Governor and the standing 36 committees of the General Assembly with jurisdiction over this 37 part on the impact of interactive gaming on compulsive and 38 problem gambling and gambling addiction in this Commonwealth. 39 The report shall be prepared by a private organization or entity 40 with expertise in serving and treating the needs of persons with 41 compulsive gambling addictions, which organization or entity 42 shall be selected by the Department of Drug and Alcohol 43 Programs. The report may be prepared and distributed in 44 coordination with the board. Any costs associated with the 45 preparation and distribution of the report shall be borne by 46 slot machine licensees who have been authorized by the board to 47 conduct interactive gaming. The board shall be authorized to 48 assess a fee against each slot machine licensee for these 49 purposes. SO (d.2) Additional information and annual reporting.--51 (1) One year after the commencement of casino

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1 simulcasting in accordance with Chapter 13C (relating to 2 casino simulcasting), the operation of skill slot machines. 3 hybrid slot machines, the operation of slot machines at 4 nonprimary locations in accordance with Chapter 130 (relating 5 to slot machines at nonprimary locations) and the operation 6 of a multistate wide-area slot machine system, the report 7 required under subsection (a) shall include information 8 related to the following : 9 (i) The conduct of casino simulcasting.

10 (ii) The operation of skill slot machines and hybrid 11 slot machines. 12 (iii) The operation of a multistate wide-area 13 progressive slot machine system. 14 (iv) The operation of slot machines at nonprimary 15 locations. 16 (2) Information on revenue, taxes, fees and fines, if 17 any, collected during the preceding calendar vear and anv 18 other information, data or recommendations related to the 19 conduct of casino simulcasting, the operation of multistate 20 wide-area progressive slot machines, skill slot machines and 21 hybrid slot machines and the operation of slot machines at 22 nonprimary locations as determined by the board, in 23 consultation with the commissions, to be necessary under this 24 part shall be included in the report. 25 (d.3) Time of submission and reports.--Notwithstanding any 26 provision of this part, all reports and studies required to be 27 submitted under subsections (d.l) and (d.2) after the effective 28 date of this subsection shall be submitted initially by October 29 l, 2017, and by October 1 of each year thereafter. 30 * * * 31 Section 7. Title 4 is amended by adding a section to read: 32 § 1211.1. Fantasy sports reoort. 33 (a) Fantasv soorts report.--Not later than 90 days after the 34 effective date of this section, the board shall submit a report 35 to the chairperson and minority chairperson of the Community, 36 Economic and Recreational Development Committee of the Senate 37 and the chairperson and minority chairperson of the Gaming 38 Oversight Committee of the House of Representatives on the 39 potential of fantasy sports as a gambling product in this 40 Commonwealth. 41 (b) Contents of report.--In compiling the report, the board 42 shall consider and address the following: 43 (1) A definition of "fantasy sports." 44 (2) The structure of the different fantasy sports 45 formats and the underlying activities that may be appropriate 46 for oversight. 47 (3) Fantasy sports entities, including the roles and 48 relationships of ancillary fantasy sports businesses, 49 including host Internet sites, collegiate and professional 50 sports organizations and persons with a controlling interest 51 in fantasy sports entities.

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1 (4) How regulation of fantasy sports would fit into the 2 Commonwealth's current gambling laws and policies. 3 (5) Compulsive and problem gambling. 4 (6) Protection of minors. 5 (7) Measures to ensure the well-being and safety of 6 players. 7 (8) Safeguards and mechanisms to ensure the reporting of a gambling winnings and facilitate the collection of applicable 9 Federal and State taxes in compliance with Federal and State

10 law. 11 (9) Recommendations for legislative action. 12 (10) Any other information related to the conduct and 13 operation of fantasy sports as the board may deem 14 appropriate. 15 Section 8. Section 1212(e) of Title 4 is amended by adding 16 paragraphs to read: 17 § 1212. Diversity goals of board. 18 * * * 19 (e) Definition.--As used in this section, the term 20 "professional services" means those services rendered to a slot 21 machine licensee which relate to a licensed facility in this 22 Commonwealth, including, but not limited to: 23 * * * 24 (9) Technology related to interactive gaming and 25 interactive gaming devices and associated equipment. 26 (10) Technology related to casino simulcasting. 27 Section 9. Section 1305 of Title 4 is amended to read: 28 § 1305. Category 3 slot machine license. 29 (a) Eligibility. - -30 (1) A person may be eligible to apply for a Category 3 31 slot machine license if the applicant, its affiliate, 32 intermediary, subsidiary or holding company has not applied 33 for or been approved or issued a Category 1 or Category 2 34 slot machine license and the person is seeking to locate a 35 Category 3 licensed facility in a well-established resort 36 hotel having no fewer than 275 guest rooms under common 37 ownership and having substantial year-round [recreational] 38 guest amenities. The applicant for a Category 3 license shall 39 be the owner or be a wholly owned subsidiary of the owner of 40 the well-established resort hotel. [A Category 3 license may 41 only be granted upon the express condition that an individual 42 may not enter a gaming area of the licensed facility if the 43 individual is not any of the following: 44 (i) A registered overnight guest of the well-45 established resort hotel. 46 (ii) A patron of one or more of the amenities 47 provided by the well-established resort hotel. 48 (iii) An authorized employee of the slot machine 49 licensee, of a gaming service provider, of the board or 50 of any regulatory, emergency response or law enforcement 51 agency while engaged in the performance of the employee's

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1 duties. 2 (iv) An individual holding a valid membership 3 approved in accordance with paragraph (1.1) or a guest of 4 such individual. 5 (1.1) The board may approve a seasonal or year-round 6 membership that allows an individual to use one or more of 7 the amenities provided by the well-established resort hotel 8 holding a Category 3 slot machine license. The membership 9 shall allow the member and one guest to enter the gaming

10 floor at any time as long as the guest is accompanied by the 11 individual owning or holding the membership. The board shall 12 base its approval of a membership on all of the following: 13 (i) The duration of the membership. 14 (ii) The amenity covered by the membership. 15 (iii) Whether the fee charged for the membership 16 represents the fair market value for the use of the 17 amenity.] 18 (2) Notwithstanding section 1512(a) and (a.1) (relating 19 to public official financial interest) , if at the time of 20 application an applicant has terminated public office or 21 employment as an executive-level public employee within the 22 last calendar year, the applicant shall be eligible to apply 23 for a slot machine license under this section but may not be 24 issued a license until one year following the date of 25 termination as a public official or executive-level public 26 employee. An application submitted in accordance with this 27 paragraph shall not constitute a violation of section 1512(a) 2 8 or (a .1) . 29 (3) If the person seeking a slot machine license 30 proposes to place the licensed facility upon land designated 31 a subzone, an expansion subzone or an improvement subzone 32 under the act of October 6, 1998 (P.L.705, No.92), known as 33 the Keystone Opportunity Zone, Keystone Opportunity Expansion 34 Zone and Keystone Opportunity Improvement Zone Act, the 35 person shall, at any time prior to the application being 36 approved, submit a statement waiving the exemptions, 37 deductions, abatements or credits granted under the Keystone 38 Opportunity Zone, Keystone Opportunity Expansion Zone and 39 Keystone Opportunity Improvement Zone Act if the board 40 approves the application. 41 (b) Location.--The following shall apply: 42 (1) [Except as provided in paragraph (1.1), no] No 43 Category 3 license shall be located by the board within 15 44 linear miles of another licensed facility. 45 (1.1) A Category 3 license established on or after [July 46 20, 2017] January l, 2016, shall not be located by the board 47 within [30 linear miles of another licensed facility.] 1Q_ 48 linear miles of the boundary of a national military park or 49 national memorial designated by the Congress of the United SO States after September 11, 2001. A Category 3 licensed 51 facility established under this paragraph shall only be

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1 located in a county that: 2 (i) does not contain a licensed facility; and 3 (ii) does not share a geographic border at any point 4 with a county where a licensed facility, regardless of 5 category, is located or may be located. 6 (2) Within five days of approving a license for an 7 applicant with a proposed licensed facility consisting of 8 land designated a subzone, an expansion subzone or an 9 improvement subzone under the Keystone Opportunity Zone,

10 Keystone Opportunity Expansion Zone and Keystone Opportunity 11 Improvement Zone Act for a slot machine license under this 12 section, the board shall notify the Department of Community 13 and Economic Development . The notice shall include a 14 description of the land of the proposed licensed facility 15 which is designated a subzone, an expansion subzone or an 16 improvement subzone. Within five days of receiving the notice 17 required by this paragraph, the Secretary of Community and 18 Economic Development shall decertify the land of the proposed 19 license facility as being a subzone, an expansion subzone or 20 an improvement subzone . Upon decertification in accordance 21 with this paragraph and notwithstanding Chapter 3 of the 22 Keystone Opportunity Zone, Keystone Opportunity Expansion 23 Zone and Keystone Opportunity Improvement Zone Act, a 24 political subdivision may amend the ordinance, resolution or 25 other required action which granted the exemptions, 26 deductions, abatements or credits required by the Keystone 27 Opportunity Zone, Keystone Opportunity Expansion Zone and 28 Keystone Opportunity Improvement Zone Act to repeal the 29 exemptions, deductions, abatements or credits for the land 30 decertified. 31 (c) Number of slot machines.--Notwithstanding the number of 32 permissible slot machines as set forth in section 1210 (relating 33 to number of slot machines) , a Category 3 license granted under 34 the provisions of this section shall entitle the licensed entity 35 to operate no more than 500 slot machines at the licensed 36 facility, provided, however, a Category 3 slot machine licensee 37 holding a table game operation certificate shall be entitled to 38 operate no more than 600 slot machines at its licensed facility. 39 (c.1) Additional slot machines.--Upon submission of a 40 request to the board, in such form and manner as the board 41 through regulation may require, the board may authorize the 42 Category 3 slot machine licensee to increase the number of slot 43 machines at its licensed facility. An increase in the number of 44 slot machines by a Category 3 slot machine licensee pursuant to 45 this subsection may not , at the discretion of the board, exceed 46 250 additional slot machines, which shall be in addition to the 47 number of permissible slot machines authorized under subsection 48 l£L.. 49 (c . 2) Increase in number . --Uoon submission of a reauest to SO the board in such form and manner as the board. through 51 regulation, may require, the board may authorize the Category 3

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1 slot machine licensee to increase the number of slot machines at 2 its licensed facility for the conduct of a slot machine 3 tournament or contest. An increase in the number of slot 4 machines by a Category 3 slot machine licensee under this 5 subsection may not, at the discretion of the board, exceed 75 6 additional slot machines, which shall be in addition to the 7 number of permissible slot machines authorized under subsection 8 l£L.. 9 (d) Category 3 license fee.--The board shall impose a one-

10 time Category 3 license fee to be paid by each successful 11 applicant in the amount of $5,000,000 to be deposited in the 12 State Gaming Fund. The provisions of section 1209(b), (c), (d) 13 and (e) shall apply to a Category 3 licensee[.], except that the 14 holder of a Category 3 slot machine license approved and issued 15 by the board on or after January 1. 2016, shall pay a fee of 16 $8,500,000 for deposit in the General Fund. 17 (d.1) Additional fee.--Notwithstanding subsection (d), no 18 later than 60 days after the effective date of subsection (a) , 19 each holder of an existing Category 3 slot machine license 20 issued by the board before January l, 2016, shall pay a fee of 21 $1,000,000 for deposit in the General Fund. 22 (d.2) Fee for additional slot machines.--Notwithstanding 23 subsection (d), no later than 60 days after the board approves a 24 request for an increase in the number of slot machines submitted 25 by a Category 3 slot machine licensee in accordance with 26 subsection (c.1), the Category 3 slot machine licensee shall oav 27 a fee of $2,500,000 for deposit into the General Fund. 28 [(e) Definitions.--For the purpose of subsection (a), the 29 following words and phrases shall have the meaning given to them 30 in this subsection: 31 "Amenities." Any ancillary activities, services or 32 facilities in which a registered guest or the transient public, 33 in return for non-de minimis consideration as defined by board 34 regulation, may participate at a well-established resort hotel, 35 including, but not limited to, sports and recreational 36 activities and facilities such as a golf course or golf driving 37 range, tennis courts or swimming pool; health spa; convention, 38 meeting and banquet facilities; entertainment facilities; and 39 restaurant facilities. 40 "Patron of the amenities." Any individual who is a 41 registered attendee of a convention, meeting or banquet event or 42 a participant in a sport or recreational event or any other 43 social, cultural or business event held at a resort hotel or who 44 participates in one or more of the amenities provided to 45 registered guests of the well-established resort hotel.] 46 Section 10. Section 1309(a.1) heading of Title 4 is amended 47 and the subsection is amended by adding a paragraph to read: 48 § 1309. Slot machine license application.

49 * * * 50 (a.1) Table games and interactive gaming information.--51 * * *

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1 (3) Notwithstanding paragraph (2), the board may permit 2 an applicant for a slot machine license that has an 3 application pending before the board to supplement its 4 application with all information required under Chapters 13B 5 (relating to interactive gaming) and 13D (relating to slot 6 machines at nonprimary locations) and to request that the 7 board consider its appl ication for a slot machine license, a 8 table game operation certificate, an interactive gaming 9 certificate or a nonprimary location permit concurrently . All

10 fees for an interact ive gaming certificate and a nonprimary 11 location permit shall be paid by the appl i cant in accordance 12 with the requirements of this part. 13 * * * 14 Section 10 .1. Sections 1317 (a) and (c) , 1317 .1 (a) , (b) , ( c) , 15 (c.1), (d.l) and (e) and 1320(a) of Title 4 are amended and the 16 sections are amended by adding subsections to read: 17 § 1317. Supplier licenses . 18 {a) Application.--A manufacturer that elects to contract 19 with a supplier under section 1317.l(d.l) (relating to 20 manufacturer licenses) shall ensure that the supplier is 21 appropriately licensed under this section. A person seeking to 22 provide slot machines, table game devices or associated 23 equipment, casino simulcasting technol ogy or equipment or 24 interactive gaming devices or associated equipment to a slot 25 machine licensee or an interactive gaming licensee within this 26 Commonwealth through a contract with a licensed manufacturer 27 shall apply to the board for the appropriate supplier license.

28 * * * 29 (c) Review and approval.--Upon being satisfied that the 30 requirements of subsection (b) have been met, the board may 31 approve the application and issue the applicant a supplier 32 license consistent with all of the following: 33 (1) The [initial license shall be for a period of one 34 year, and , if renewed under subsection (d), the) license 35 shall be issued for a period of [three] five years and shall 36 be renewed in accordance with subsection (d) . Nothing in this 37 paragraph shall relieve a licensee of the affirmative duty to 38 notify the board of any changes relating to the status of its 39 license or to any information contained in the application 40 materials on file with the board. 41 (2) The license shall be nontransferable. 42 (3) Any other condition established by the board.

43 * * * 44 (c . 2) Abbreviated process for supplier.--45 (1) Notwithstanding subsection (c.l) (1) or anv 4 6 regulations of the board to the contrary, the board mav 47 extend the use of the abbreviated process authorized under 48 subsection (c . 1) to an applicant for a supplier license to 49 supply slot machines used in a multistate wide-area so progressive slot machine system, skill slot machines, hybrid 51 slot machines and devices or associated eguipment used in

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1 connection with multistate wide-area oroqressive slot machine 2 systems, skill or hybrid slot machines, interactive gaming 3 devices or associated equipment used in connection with 4 interactive qaming or casino simulcasting equipment and 5 technology used to conduct casino simulcasting, if the 6 applicant holds a valid supplier license issued by the board 7 to supply slot machines or associated equipment or table 8 games or table game devices and associated equipment. The 9 requirements of subsection (c.l) (2) and (3) shall apply to

10 this subsection. 11 (2) An applicant for a supplier's license to supply slot 12 machines used in a multistate wide-area progressive systems, 13 skill or hybrid slot machines or associated equipment, 14 interactive gaming devices or associated equipment or casino 15 simulcasting equipment or technology shall be subject to the 16 applicable provisions of this part. 17 * * * 18 § 1317 . 1 . Manufacturer licenses . 19 (a) Application . --A person seeking to manufacture slot 20 machines , table game devices and associated equipment-'--21 interactive gaming devices and associated equipment or casino 22 simulcasting technology or equipment for use in this 23 Commonwealth shall apply to the board for a manufacturer 24 license. 25 (b) Requirements.--An application for a manufacturer license 26 shall be on the form required by the board, accompanied by the 27 application fee, and shall include all of the following: 28 (1) The name and business address of the applicant and 29 the applicant's affiliates, intermediaries, subsidiaries and 30 holding companies; the principals and key employees of each 31 business; and a list of employees and their positions within 32 each business, as well as any financial information required 33 by the board . 34 (2) A statement that the applicant and each affiliate , 35 intermediary, subsidiary or holding company of the applicant 36 are not slot machine licensees. 37 (3) The consent to a background investigation of the 38 applicant, its principals and key employees or other persons 39 required by the board and a release to obtain any and all 40 information necessary for the completion of the background 41 investigation. 42 (4) The details of any equivalent license granted or 43 denied by other jurisdictions where gaming activities as 44 authorized by this part are permitted and consent for the 45 board to acquire copies of applications submitted or licenses 46 issued i n connection therewith. 47 (5) The type of slot machines, table game devices or 48 associated equipment, interactive gaming devices or 49 associated equipment or casino simulcasting technology or so equipment to be manufactured or repaired. 51 (6) Any other information determined by the board to be

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1 appropriate. 2 (c) Review and approval.--Upon being satisfied that the 3 requirements of subsection (b) have been met, the board may 4 approve the application and grant the applicant a manufacturer s license consistent with all of the following: 6 (l) The [initial license shall be for a period of one 7 year, and, if renewed under subsection (d), the] license 8 shall be issued for a period of [three] five years and shall 9 be renewed in accordance with subsection (d) . Nothing in this

10 paragraph shall relieve the licensee of the affirmative duty 11 to notify the board of any changes relating to the status of 12 its license or to any other information contained in 13 application materials on file with the board. 14 (2) The license shall be nontransferable. 15 (3) Any other condition established by the board. 16 (c.l) Abbreviated process.--In the event an applicant for a 17 manufacturer license to manufacture table game devices or 18 associated equipment used in connection with table games is 19 licensed by the board under this section to manufacture slot 20 machines or associated equipment used in connection with slot 21 machines, the board may determine to use an abbreviated process 22 requiring only that information determined by the board to be 23 necessary to consider the issuance of a license to manufacture 24 table game devices or associated equipment used in connection 25 with table games, including financial viability of the 26 applicant. Nothing in this section shall be construed to waive 27 any fees associated with obtaining a license, certificate or 28 permit through the normal application process. The board may 29 only use the abbreviated process if all of the following apply: 30 (1) The manufacturer license was issued by the board 31 within a 36-month period immediately preceding the date the 32 manufacturer licensee files an application to manufacture 33 table game devices or associated equipment. 34 (2) The person to whom the manufacturer license was 35 issued affirms there has been no material change in 36 circumstances relating to the license. 37 (3) The board determines, in its sole discretion, that 38 there has been no material change in circumstances relating 39 to the licensee that necessitates that the abbreviated 40 process not be used. 41 (c.2) Abbreviated process for manufacturer.--42 (1) Notwithstanding subsection (c.l) (1) or any 43 regulations of the board to the contrary, the board mav 44 extend the use of the abbreviated process authorized under 45 subsection (c.l) to an applicant for a manufacturer license 46 to manufacture multistate wide-area progressive slot 47 machines, skill slot machines, hybrid slot machines or 48 associated equipment used in connection with multistate wide-49 area progressive slot machines, skill or hybrid slot 50 machines, interactive gaming devices or associated equipment 51 used in connection with interactive gaming or casino

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1 simulcasting equipment and technology used to conduct casino 2 simulcasting, if the applicant holds a valid manufacturer 3 license issued by the board to manufacturer slot machines or 4 associated equipment or table games or table game devices or s associated equipment. The requirements of subsection (c.l) 6 (2) and (3) shall apply to this subsection. 7 (2) An applicant for a manufacturer license to 8 manufacture slot machines used in a multistate wide-area 9 oroqressive system, skill or hybrid slot machines or

10 associated equipment, interactive gaming devices or 11 associated equipment or casino simulcasting equipment or 12 technology shall be subject to the applicable provisions of 13 this part. 14 * * * 15 (d.l) Authority.--The following shall apply to a licensed 16 manufacturer: 17 (1) A manufacturer or its designee, as licensed by the 18 board, may supply or repair any slot machine, table game 19 device or associated equipment, interactive gaming device or 20 associated equipment or casino simulcasting technology or 21 equipment manufactured by the manufacturer, provided the 22 manufacturer holds the appropriate manufacturer license . 23 (2) A manufacturer of slot machines may contract with a 24 supplier under section 1317 (relating to supplier licenses} 25 to provide slot machines or associated equipment to a slot 26 machine licensee within this Commonwealth, provided the 27 supplier is licensed to supply slot machines or associated 28 equipment used in connection with slot machines. 29 (3) A manufacturer may contract with a supplier under 30 section 1317 to provide table game devices or associated 31 equipment to a certificate holder, provided the supplier is 32 licensed to supply table game devices or associated equipment 33 used in connection with table games. 34 (4) A manufacturer may contract with a supplier under 35 section 1317 to provide slot machines used in a multistate 36 wide-area progressive system, skill or hybrid slot machines 37 or associated equipment, interactive gaming devices or 38 associated equipment to a slot machine licensee, provided 39 that the manufacturer is licensed to manufacture slot 40 machines used in a multistate wide-area progressive slot 41 machine system, skill or hybrid slot machines or associated 42 equipment, interactive gaming devices or associated equipment 43 used in connection with interactive games or casino 44 simulcasting technology or equipment used to conduct casino 45 simulcasting. 46 (e) Prohibitions.--47 (1) No person may manufacture slot machines, table game 48 devices or associated equipment. interactive gaming devices 49 or associated equipment or casino simulcasting technology or SO equipment for use within this Commonwealth by a slot machine 51 licensee unless the person has been issued the appropriate

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1 manufacturer license under this section. 2 (2) Except as permitted in section 13A23.1 (relating to 3 training equipment), no slot machine licensee may use slot 4 machines, table game devices or associated equipment.L-s authorized interactive games or interactive gaming devices or 6 associated equipment or casino simulcasting technology or 7 equipment unless the slot machines, table game devices or 8 associated equipment, interactive games, interactive gaming 9 devices or associated equipment or casino simulcasting

10 technology or equipment were manufactured by a person that 11 has been issued the appropriate manufacturer license under 12 this section. 13 (3) No person issued a license under this section shall 14 apply for or be issued a license under section 1317. 15 (4) No limitation shall be placed on the number of 16 manufacturer licenses issued or the time period to submit 17 applications for licensure, except as required to comply with 18 section 1306 (relating to order of initial license issuance) . 19 § 1320. Slot machine testing and certification standards. 20 (a) Use of other state standards.--IUntil such time as the 21 board establishes an independent testing and certification 22 facility pursuant to subsection (b) , theJ The board may 23 determine, at its discretion, whether the slot machine testing 24 and certification standards of another jurisdiction within the 25 United States in which an applicant for a manufacturer license 26 is licensed are comprehensive and thorough and provide similar 27 adequate safeguards as those required by this part. If the board 28 makes that determination, it may permit a manufacturer through a 29 licensed supplier as provided in section 1317 (relating to 30 supplier and manufacturer licenses application) to deploy those 31 slot machines which have met the slot machine testing and 32 certification standards in such other jurisdictions without 33 undergoing the full testing and certification process by a 34 board-established independent facility. In the event slot 35 machines of a n applicant for a manufacturer license are licensed 36 in such other j urisdiction, the board may determine to use an 37 abbreviated process requiring only that information determined 38 by the board to be necessary to consider the issuance of a slot 39 machine certification to such an applicant. [Alternatively, the 40 board in its discretion may also rely upon the certification of 41 a slot machine that has met the testing and certification 42 standards of a board-approved private testing and certification 43 facility until such time as the board establishes an independent 44 testing and certification facility pursuant to subsection (b) . 45 Nothing in this section shall be construed to waive any fees 46 associated with obtaining a license through the normal 47 application process . ]

48 * * * 49 (b.1) Use of private testing and certification facilities.--50 Notwithstandi ng any other provisions of this part or regulation 51 of the board, if a slot machine is tested and certified by a

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1 private testing and certification facility registered with the 2 board, the board shall use an abbreviated certification process 3 requiring only that information determined by it to be necessary 4 to consider the issuance of a slot machine certification under s this section. Within one year of the effective date of this 6 subsection, the board shall promulgate regulations that: 7 (1) Provide for the registration of private testing and 8 certification facilities. Persons seeking registration under 9 this subsection shall be subject to section 1202(b} (9)

10 (relating to specific powers) . 11 (2} Specify the form and content of the application for 12 registration. 13 (3) Establish and collect an application fee for persons 14 seeking registration. The application fee shall include the 15 costs of all background investigations as determined 16 necessary and appropriate by the board. 17 (4) Establish uniform procedures and standards which 18 private testing and certification facilities must comply with 19 during the testing and certification of slot machines. 20 (5) Utilize information provided by private testing and 21 certification facilities for the abbreviated certification of 22 slot machines. 23 (6) Establish an abbreviated certification process that 24 may be used by registered private testing and certification 25 facilities to test and certify slot machines. 26 (7) Establish fees that must be paid by licensed 27 manufacturers. 28 (8) Require slot machines submitted for abbreviated 29 certification to be approved or denied by the board within 30 30 days from the date of submission to the board . If the board 31 fails to act within the 30-day period, the abbreviated 32 certification shall be deemed conditionally approved. 33 (9) Provide procedures and standards for the suspension 34 and revocation of the registration of a private testing and 35 certification facility and the reinstatement of a suspended 36 or revoked registration, as determined appropriate by the 37 board. 38 * * * 39 Section 10.2. Sections 1326(a) and (b), 13All(b), 13A22(c) 40 and 13A27(c) of Title 4 are amended to read: 41 § 1326. [License renewals] Renewals. 42 (a) Renewal.--All permits [and]L licenses, registrations or 43 certificates issued under this part unless otherwise provided 44 shall be subject to renewal every [three] five years. Nothing in 45 this subsection shall relieve a licensee of the affirmative duty 46 to notify the board of any changes relating to the status of its 47 license or to any other information contained in the application 48 materials on file with the board. The application for renewal 49 shall be submitted at least [60) 180 days prior to the so expiration of the permit [or]L license, registration or 51 certificate and shall include an update of the information

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1 contained in the initial and any prior renewal applications and 2 the payment of any renewal fee required by this part. Unless 3 otherwise specifically provided in this part, the amount of any 4 renewal fee shall be calculated by the board to reflect the s longer renewal period. A permit [or]L license, registration or 6 certificate for which a completed renewal application and fee, 7 if required, has been received by the board will continue in 8 effect unless and until the board sends written notification to 9 the holder of the permit [or]L license, reqistration or

10 certificate that the board has denied the renewal of such permit 11 [or]L license, registration or certificate. 12 (b) Revocation or failure to renew.--In addition to any 13 other sanctions the board may impose under this part, the board 14 may at its discretion suspend, revoke or deny renewal of any 15 permit [or]L license, registration or certificate issued under 16 this part if it receives any information from any source that 17 the applicant or any of its officers, directors, owners or key 18 employees is in violation of any provision of this part, that 19 the applicant has furnished the board with false or misleading 20 information or that the information contained in the applicant's 21 initial application or any renewal application is no longer true 22 and correct. In the event of a revocation or failure to renew, 23 the applicant's authorization to conduct the previously approved 24 activity shall immediately cease, and all fees paid in 25 connection therewith shall be deemed to be forfeited. In the 26 event of a suspension, the applicant's authorization to conduct 27 the previously approved activity shall immediately cease until 28 the board has notified the applicant that the suspension is no 29 longer in effect. 30 § 13All. Authorization to conduct table games. 31 * * * 32 (b) Number of authorized gaming tables.--33 (l) A Category 1 and Category 2 slot machine licensee 34 awarded a table game operation certificate may operate up to 35 250 gaming tables at any one time at its licensed facility. 36 No more than 30% of these gaming tables may be used to play 37 nonbanking games at any one time. Six months following the 38 date of commencement of table game operations, the board may 39 permit a Category 1 or Category 2 certificate holder to 40 increase the number of gaming tables above the number 41 authorized under this paragraph. The certificate holder shall 42 petition the board for the increase at its licensed facility. 43 The board, in considering the petition, shall take into 44 account the appropriateness of the physical space where the 45 gaming tables will be located and the convenience of the 46 public attending the facility. The board may also take into 47 account the potential benefit to the Commonwealth. 48 (2) A Category 3 slot machine licensee awarded a table 49 game operation certificate may operate up to SO gaming tables SO at any one time at its licensed facility. [No more than 30% 51 of these gaming tables may be used to play nonbanking games

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l at any one time.] 2 (2 . l) A Category 3 slot machine licensee awarded a table 3 game operation certificate may petition the board for 4 additional table games at its licensed facility. The board s may authorize up to 15 additional gaming tables. The 6 additional tables shall be used to play nonbanking games. The 7 board. in considering the petition, shall take into account 8 the appropriateness of the physical space where the gaming 9 tables will be located and the convenience of the public

10 attending the facility. The board may also take into account 11 the potential benefit to the Commonwealth. 12 (3) Nonbanking gaming tables shall seat a maximum of ten 13 players. 14 § 13A22.1. Table game tournaments. 15 * * * 16 (c) Exemptions and additional tables.--The following shall 17 apply: 18 (l) For a Category 1 or Category 2 licensed facility, 19 gaming tables used in tournaments shall be exempt from 20 section l3All (b) (1) (relating to authorization to conduct 21 table games) and shall not be used in any calculation of the 22 total number of gaming tables authorized in the table game 23 authorization certificate. 24 (2) For a Category 3 licensed facility, the executive 25 director may authorize the licensed facility to operate up to 26 15 additional gaming tables for use in tournaments. [The 27 executive director may grant the use of the additional gaming 28 tables for tournaments authorized under this paragraph only 29 one day per month.] Additional tables for use in tournaments 30 shall be exempt from section 13A11(b) (2) (relating to 31 authorization to conduct table games) and shall not be used 32 in any calculation of the total number of gaming tables 33 authorized in the table game authorization certificate. The 34 executive director may grant the use of additional gaming 35 tables on the dates and times listed in the proposed schedule 36 of tournaments submitted by the Category 3 slot machine 37 licensee in accordance with subsection (b).

38 * * * 39 § l3A27. Other financial transactions . 40 * * * 41 (c) Credit application verification.---Prior to approving an 42 application for credit, a certificate holder shall verify: 43 (l) The identity, creditworthiness and indebtedness 44 information of the applicant by conducting a comprehensive 45 review of the information submitted with the application and 46 any information regarding the applicant's credit activity at 47 other licensed facilities which the certificate holder may 48 obtain through a casino credit bureau and, · if appropriate, 49 through direct contact with other slot machine licensees. so (2) That the applicant's name is not included on an 51 exclusion list under section 1514 (relating to regulation

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1 requiring exclusion [or]L ejection or denial of access of 2 certain persons) or 1516 (relating to list of persons self 3 excluded from gaming activities} or the voluntary credit 4 suspension list under subsection (h) .

5 * * * 6 Section 10.3. Section 13A41 of Title 4 is amended by adding 7 a subsection to read: 8 § 13A41. Table game device and associated equipment testing and 9 certification standards.

10 * * * 11 (b.1) Use of private testing and certification facilities.--12 Notwithstanding any provision of this part or regulation of the 13 board, if a table game device or associated equipment is tested 14 and certified by a private testing and certification facility 15 registered with the board, the board shall use an abbreviated 16 certification process requiring only that information determined 17 by it to be necessary to consider the issuance of a table game 18 device or associated equipment certification under this section. 19 Within one year of the effective date of this subsection, the 20 board shall promulgate regulations that: 21 (1) Provide for the registration of private testing and 22 certification facilities. Persons seeking registration under 23 this subsection shall be subject to section 1202(b) (9) 24 (relating to specific powers) . 25 (2) Specify the form and content of the application for 26 registration. 27 (3) Establish and collect an application fee for persons 28 seeking registration. The application fee shall include the 29 costs of all background investigations as determined 30 necessary and appropriate by the board. 31 (4) Establish uniform procedures and standards which 32 private testing and certification facilities must comply with 33 during the testing and certification of table game devices 34 and associated equipment. 35 (5) Utilize information provided by private testing and 36 certification facilities for the abbreviated certification of 37 table game devices and associated ecruioment. 38 (6) Establish an abbreviated certification process that 39 may be used by registered private testing and certification 40 facilities to test and certify table game devices and 41 associated equipment. 42 (7) Establish fees that must be paid by a licensed 43 manufacturer. 44 (B) Require table game devices and associated equipment 45 submitted for abbreviated certification to be approved or 46 denied by the board within 30 days from the date of 47 submission to the board. If the board fails to act within the 48 30-day period, the abbreviated certification shall be deemed 49 conditionally approved. 50 (9) Provide procedures and standards for the suspension 51 and revocation of the registration of a private testing and

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1 certification facility and the reinstatement of a suspended 2 or revoked registration. 3 Section 10.4. Sections 13A61(a} and (f} and 13A63(b) (4) of 4 Title 4 are amended to read: s § 13A61. Table game authorization fee. 6 (a} Amount of authorization fee.--7 (1) A Category 1 or a Category 2 slot machine licensee 8 that submits a petition for a table game operation 9 certificate under section 13A12 (relating to petition

10 requirements} on or before June 1, 2010, shall pay a one-time 11 nonrefundable authorization fee in the amount of $16,500,000. 12 A Category 1 or a Category 2 slot machine licensee that 13 submits a petition for a table game operation certificate 14 under section 13A12 after June 1, 2010, shall pay a one-time 15 nonrefundable authorization fee in the amount of $24,750,000. 16 (2) A Category 3 slot machine licensee that submits a 17 petition for a table game operation certificate under section 18 13A12 on or before June 1, 2010, shall pay a one-time 19 nonrefundable authorization fee in the amount of $7,500,000. 20 A Category 3 slot machine licensee that submits a petition 21 for a table game operation certificate under section 13Al2 22 after June 1, 2010, shall pay a one-time nonrefundable 23 authorization fee in the amount of $11,250,000. 24 (3} Notwithstanding paragraphs (1) and (2), the holder 25 of a Category 1 or Category 3 slot machine license issued 26 after June 1, 2010, that submits a petition for a table game 27 operation certificate shall pay a one-time nonrefundable 28 authorization fee in the amount of $16,500,000 or $7,500,000, 29 respectively. 30 (3.1) Notwithstanding paragraphs (2) and (3), the holder 31 of a Category 3 slot machine license issued on or after 32 January l, 2016, that submits a petition for a table game 33 operation certificate shall pay a one-time nonrefundable 34 authorization fee in the amount of $8,500,000. 35 (3.2) Notwithstanding any other provision of this part, 36 no later than 60 days after the board approves a request for 37 additional table games in accordance with section 13All 38 (relating to authorization to conduct table games) submitted 39 by the holder of a Category 3 slot machine license issued 40 prior to January l, 2016, the Category 3 slot machine 41 licensee shall pay a one-time nonrefundable fee in the amount 42 of $1,000,000. 43 (4) A table game operation certificate shall not be 44 subject to renewal or payment of an additional authorization 45 fee. 46 * * * 47 (f) Deposit of fees.--Notwithstanding section 1208 (relating 48 to collection of fees and fines), all table game authorization 49 fees and other fees or penalties received by the board under 50 this subchapter, all table game device and associated equipment 51 manufacturer and supplier license fees, all table game device or

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1 associated equipment manufacturer and supplier renewal fees and 2 fees for licenses issued under Chapter 16 (relating to junkets) 3 shall be deposited in the General Fund. 4 § 13A63. Local share assessment. 5 * * * 6 (b) Distributions to counties.--The department shall make 7 quarterly distributions from the local share assessments 8 deposited into the fund under subsection (a) to counties, 9 including home rule counties, hosting a licensed facility

10 authorized to conduct table games under this chapter in 11 accordance with the following: 12 * * * 13 (4) The following apply: 14 (i) If the facility is a Category 3 licensed 15 facility located in a county of the second class A: 50% 16 of the licensed facility's local share assessment shall 17 be [deposited into a restricted receipts account to be 18 established in the Commonwealth Financing Authority to be 19 used exclusively for grants or guarantees for projects in 20 the county that qualify under 64 Pa.C.S. §§ 1551 21 (relating to Business in Our Sites Program), 1556 22 (relating to Tax Increment Financing Guarantee Program) 23 and 1558 (relating to Water Supply and Waste Water 24 Infrastructure Program).] distributed as follows: 25 (A) Seventy-five percent shall be deposited to 26 the county hosting the licensed facility from each 27 such licensed facility for the purpose of supporting 28 the maintenance and refurbishment of the Parks and 29 Heritage sites throughout the county in which the 30 licensee is located . 31 (B) Twelve and one-half percent shall be 32 deposited to the county hosting the licensed facility 33 from each such licensed facility for the purpose of 34 supporting a child advocacy center located within the 35 county in which the licensee is l ocated. 36 (C) Twelve and one-half percent shall be 37 deposited to the county hosting the licensed facility 38 from each such licensed facility for the p urpose of 39 supporting an organization providing comprehensive 40 support services to victims of domestic violence, 41 including legal and medical aid, shelters, 42 transitional housing and counseling located within 43 the county in which the licensee is located. 44 (ii) Except as provided in subparagraph (i ) , if the 45 facility is a Category 3 licensed facility in a county of 46 any class: 50% of the licensed facility's local share 47 assessment shall be added to the funds in the restricted 48 receipts account established under section 1403(c) (2) (iv) 49 for distribution with those funds. so * * * 51 Section 11. Title 4 is amended by adding chapters t o read:

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1 CHAPTER 13B 2 INTERACTIVE GAMING 3 Subchapter 4 A. General Provisions 5 B. Interactive Gaming Authorized 6 C. Conduct of Interactive Gaming 7 D. Facilities and Equipment 8 E. Testing and Certification 9 F. Taxes and Fees

10 G. Miscellaneous Provisions 11 SUBCHAPTER A 12 GENERAL PROVISIONS 13 Sec. 14 13B01. Legislative findings. 15 13B02. Regulatory authority. 16 13B03. Temporary interactive gaming regulations. 17 § 13B01. Legislative findings. 18 The General Assembly finds and declares that: 19 (1) The primary objective of the Pennsylvania Race Horse 20 Development and Gaming Act, to which all other objectives are 21 secondary, is to protect the public through the regulation 22 and policing of all activities involving gaming and practices 23 that continue to be unlawful. 24 (2) Legislative authorization of slot machine gaming and 25 the conduct of table games is intended to enhance live horse 26 racing, breeding programs, entertainment and employment in 27 this Commonwealth. 28 (3) Legalized gaming is seen as a means to provide a 29 source of revenue for property and wage tax relief, promote 30 economic development and enhance development of tourism 31 markets throughout this Commonwealth. 32 (4) Legalized gaming in the Category l, Category 2 and 33 Category 3 licensed facilities geographically dispersed in 34 this Commonwealth has become a critical component of economic 35 development and, if gaming activities continue to be properly 36 regulated and fostered, it will provide a substantial 37 contribution to the general health, welfare and prosperity of 38 this Commonwealth and its citizens. 39 (5) The General Assembly remains committed to ensuring a 40 robust gaming industry in this Commonwealth that is capable 41 of competing internationally, nationally and regionally at 42 the highest levels of quality while maintaining strict 43 regulatory oversight to ensure the integrity of all gaming 44 operations as supervised by the board. 45 (6) Since its development, the Internet has provided the 46 opportunity for millions of people worldwide to enqaqe in 47 online gambling, mostly through illegal, unregulated off-48 shore gambling operations. 49 (7) In 2006, the United States Congress passed and the 50 President of the United States signed the Unlawful Internet 51 Gambling Enforcement Act of 2006 (Public Law 109-347, 31

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1 2 3 4 5 6 7 8 9

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 so §

51

u.s.c. § 5361 et seq.) r which generally prohibits the use of banking instruments, including credit cards, checks and money transfers for interstate Internet gambling.

(8) Although the Unlawful Internet Gambling Enforcement Act of 2006 prohibits interstate Internet gambling by United States citizens. it included an exception that permits individual states to create a regulatory framework to govern intrastate Internet or interactive gambling, provided that the bets or wagers would be made exclusively within a single state under certain circumstances.

(9) Interactive gaming is illegal in this Commonwealth and without legislative authorization and strict regulation, the public's trust and confidence in legalized commercial gaming may be impacted.

(10) In this Commonwealth, interactive gaming has been conducted without oversight, regulation or enforcement, all of which raises significant concerns for the protection of the health, welfare and safety of the citizens of this Commonwealth.

(11) An effective regulatory, licensing and enforcement system for Interactive gaming in this Commonwealth would inhibit underage wagering and otherwise protect vulnerable individuals. ensure that the games offered through the Internet are fair and safe, stop sending much-needed jobs, tax and other revenue offshore to illegal operators, provide a significant source of taxable revenue, create jobs and economic development and address the concerns of law enforcement.

(12) By legalizing interactive gaming and subjecting it to the regulatory oversight of the Pennsylvania Gaming Control Board, the General Assembly is assuring the citizens of this Commonwealth that only those persons licensed by the board to conduct slot machine gaming and table games and to operate interactive games or interactive gaming systems, in accordance with the requirements of this part, have been determined to be suitable to facilitate and conduct interactive gaming activities in this Commonwealth.

(13) An effective regulatory, licensing and enforcement system to govern interactive gaming in this Commonwealth is consistent with the original objectives and intent of the Pennsylvania Race Horse Development and Gaming Act, thereby ensuring the public trust and confidence in the commercial gaming industry in this Commonwealth.

(14) The Commonwealth has a legitimate State interest in protecting the integrity of State-authorized interactive gaming by licensing those entities already engaged in the conduct of gaming in this Commonwealth, which are subject to the scrutiny and discipline of the board and other regulatory agencies and which are in good standing with those agencies.

13B02. Regulatory authority. (a) Authority.--The board shall promulgate and adopt rules

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1 and regulations to govern the conduct of interactive gaming in 2 order to ensure that it will be implemented in a manner that 3 provides for the security and effective management. 4 ad.ministration and control of interactive gaming. including, but 5 not limited to, regulations : 6 (1) Ensuring that interactive gaming is offered for play 7 in this Commonwealth in a manner that is consistent with 8 Federal law and the provisions of this chapter. 9 (2) Establishing standards and procedures for testing

10 and approving interactive games and interactive gaming 11 devices and associated equipment, and any variations or 12 composites of authorized interactive games, provided that the 13 board determines that the interactive games and any new 14 interactive games or any variations or composites are 15 suitable for use after a test or experimental period under 16 any terms and conditions as the board may deem appropriate. 17 The board may give priority to the testing of interactive 18 games, interactive gaming devices and associated equipment or 19 other gaming equipment which a slot machine licensee has 20 certified that it will use to conduct interactive gaming in 21 this Commonwealth. Nothing in this paragraph shall be 22 construed to prohibit the board from using the testing and 23 certification standards of another state or jurisdiction in 24 which interactive gaming is conducted. if it determines that 25 the standards of the jurisdiction are comprehensive, thorough 26 and provide similar and adequate safeguards as those required 27 under this part. If the board makes such a determination and 28 the applicant for an interactive gaming certificate or an 29 interactive gaming license is licensed in another state or 30 jurisdiction to operate interactive gaming, it may use an 31 abbreviated process requiring only the information determined 32 by it to be necessary to consider the issuance of a 33 certification under this chapter. The board, in its 34 discretion, may also rely upon the certification of 35 interactive games that have met the testing and certification 36 standards of a board-approved private testing and 37 certification facility . 38 (3) Establishing standards and rules to govern the 39 conduct of interactive gaming and the system of and wagering 40 associated with interactive gaming, including internal 41 controls and accounting controls , and the type, number, 42 payout, wagering limits and rules for interactive games. 43 (4) Establishing the method for calculating gross 44 interactive gaming revenue and standards for the daily 45 counting and recording of cash and cash equivalents received 46 in the conduct of authorized interactive games and ensure 47 that internal controls and accounting controls are followed, 48 including the maintenance of financial books and records and 49 the conduct of audits. The board shall consult with the SO department in establishing these regulations. 51 (5) Establishing notice requirements pertaining to

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1 minimum and maximum wagers on authorized interactive games. 2 (6) Ensuring that all facilities and interactive gaming 3 devices and associated equipment are arranged in a manner to 4 promote appropriate security for interactive gaming. 5 (7) Establishing technical standards for the approval of 6 interactive games, interactive gaming devices and associated 7 equipment, including mechanical, electrical or program a reliability, security against tampering and any other 9 standards as it may deem necessary to protect registered

10 players from fraud or deception. 11 (8) Governing the creation and utilization of 12 interactive gaming accounts by registered players, including 13 requiring that: 14 (i) Interactive gaming accounts be possessed by a 15 natural person and not in the name of any beneficiary, 16 custodian, joint trust, corporation, partnership or other 17 organization or entity. 18 (ii) Interactive gaming accounts shall not be 19 assignable or otherwise transferable. 20 (iii) No account be established for an individual 21 under 21 years of age. 22 (9) Establishing procedures for registered players to 23 log into their interactive gaming accounts, authenticate 24 identities, agree to terms, conditions and rules applicable 25 to authorized interactive games and log out of interactive 26 gaming accounts, including procedures for automatically 27 logging off registered players from an interactive game after 28 a specified period of inactivity. 29 (10) Establishing procedures for: 30 (i) Depositing funds in an interactive gaming 31 account by cash, transfer or other means. 32 (ii) The withdrawal of funds from interactive gaming 33 accounts . 34 (iii) The suspension of interactive gaming account 35 activity for security reasons. 36 (iv) The termination of interactive gaming accounts 37 and disposition of proceeds in accounts. 38 (v) The disposition of unclaimed amounts in dormant 39 interactive gaming accounts. 40 (11) Establishing mechanisms by which registered players 41 may place limits on the amount of money being wagered per 42 authorized interactive game or during any specified time 43 period or the amount of losses incurred during any specified 44 time period. 45 (12) Establishing mechanisms to exclude from interactive 46 gaming persons not eligible to play by reason of age, 47 identity or location or inclusion on a list of persons denied 48 access to interactive gaming activities in accordance with 49 sections 1514 (relating to regulation requiring exclusion, SO ejection or denial of access of certain persons), 1515 51 (relating to repeat of fenders excludable from licensed gaming

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1 facility) and 1516 (relating to list of persons self excluded 2 from gaming activities) . 3 (13) Establishing procedures for the protection, 4 security and reliability of interactive gaming accounts, 5 authorized interactive games, interactive gaming devices and 6 associated equipment and mechanisms to prevent tampering or 7 utilization by unauthorized persons. a (14) Establishing data security standards to govern age, 9 identity and location verification of persons engaged in

10 interactive gaming activity. 11 (15) Requiring each interactive gaming certificate 12 holder to: 13 (i) Provide written information on its interactive 14 gaming skin or Internet website, which explains the rules 15 for each authorized interactive game, payoffs or winning 16 wagers and other information as the board may require. 17 (ii) Designate one or more interactive gaming 18 restricted areas where interactive gaming will be 19 managed, administered or controlled. 20 (iii) Provide the board with access to the 21 interactive gaming skin or website, interactive gaming 22 platform, signal or transmission used in connection with 23 interactive gaming. 24 (iv) Adopt procedures for the recordation, 25 replication and storage of all play and transactions for 26 a period to be determined by the board. 27 (v) Provide statements on its interactive gaming 28 skin or website about the permissible minimum and maximum 29 wagers for each authorized interactive game, as 30 applicable. 31 (vi) Adopt policies or procedures to prohibit any 32 unauthorized person from having access to interactive 33 gaming devices and associated equipment, including 34 software, system programs, hardware and any other gaming 35 equipment which is used to manage. administer or control 36 interactive gaming. 37 (vii) Adopt data security standards to verify the 38 age, identity and location of persons engaged in 39 interactive gaming activity and prevent unauthorized 40 access by any person whose age and location have not been 41 verified or whose age and location cannot be verified in 42 accordance with regulations adopted by the board. 43 (viii) Adopt standards to protect the privacy and 44 security of persons engaged in interactive gaming. 45 (ix) Collect, report and pay any and all applicable 46 taxes and fees and maintain all books, records and 47 documents related to the slot machine licensee's 48 interactive gaming activities in a manner and in a 49 location within this Commonwealth as approved by the 50 board or the department. All books, records and documents 51 shall be immediately available for inspection during all

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1 hours of operation in accordance with the regulations of 2 the board and shall be maintained in a manner and during 3 periods of time as the board shall by regulation require. 4 (b) Additional authority.--5 (1) At its discretion, the board may determine whether 6 persons that provide the following goods or services and any 7 other goods or services related to interactive gaming as the a board may determine shall be required to obtain a license, 9 permit or other authorization:

10 (i) Payment processing and related money 11 transmitting and services. 12 (ii) Customer identity or age verification and 13 geospatial technology services. 14 (iii) General telecommunications services, which are 15 not specifically designed for or related to interactive 16 gaming. 17 (iv) Other goods or services that are not 18 specifically designed for use with interactive gaming if 19 the persons providing the goods or services are not paid 20 a percentage of gaming revenue or of money wagered on 21 interactive games or of any fees, not including fees to 22 financial institutions and oavment providers for 23 facilitating a deposit by an interactive gaming account 24 holder. 25 (2) The board shall develop a classification system for 26 the licensure, permitting or other authorization of persons 27 that provide the following goods or services related to 28 interactive gaming: 29 (i) Persons that provide interactive games and 30 interactive gaming devices and associated equipment. 31 (ii) Persons that manage, control or administer the 32 interactive games or the wagers associated with 33 interactive games. 34 (iii) Providers of customer lists comprised of 35 persons identified or selected, in whole or in part, 36 because they placed or may place wagers on interactive 37 gaming. 38 (c) Definition.--For the purposes of subsection (a) (9), 39 (12), (14) and (15) (ix) and (x), the term "person" shall mean a 40 natural person. 41 § 13B03. Temporary interactive gaming regulations. 42 (a) Promulgation.--43 (1) In order to facilitate the prompt implementation of 44 this chapter, regulations promulgated by the board shall be 45 deemed temporary regulations which shall expire not later 46 than two years following the publication of the temporary 47 regulation in the Pennsylvania Bulletin and on the board's 48 publicly accessible Internet website. 49 (2) The board may promulgate temporary regulations not 50 subject to: 51 (i) Sections 201, 202, 203, 204 and 205 of the act

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1 of July 31, 1968 (P.L.769, No.240), referred to as the 2 Commonwealth Documents Law. 3 (ii) Sections 204(b) and 301(10) of the act of 4 October 15, 1980 (P.L.950, No.164), known as the 5 Commonwealth Attorneys Act. 6 (iii) The act of June 25, 1982 (P.L.633, No.181), 7 known as the Regulatory Review Act. 8 (b) Temporary reqµlations.--The board shall begin publishing 9 temporary regulations governing the rules for interactive

10 gaming, the issuance of interactive gaming certificates and 11 interactive gaming licenses, standards for approving 12 manufacturers, suppliers and other persons seeking to provide 13 interactive games, interactive gaming devices and associated 14 equipment, including age and location verification software or 15 system programs and security and surveillance standards in the 16 Pennsylvania Bulletin not later than February l, 2016 . 17 (c) Expiration of temporary regulations.--Except for 18 temporary regulations governing the rules for issuing 19 certificates and licenses under this chapter, for new 20 interactive games, for approving interactive games, interactive 21 gaming devices and associated equipment and for approving 22 manufacturers, suppliers and other persons seeking to provide 23 interactive games, interactive gaming devices and associated 24 equipment, the board's authority to adopt temporary regulations 25 under subsection (a) shall expire two years after the effective 26 date of this section. Regulations adopted after this period 27 shall be promulgated as provided by law. 28 SUBCHAPTER B 29 INTERACTIVE GAMING AUTHORIZED 30 Sec. 31 13Bll. Authorization to conduct interactive gaming. 32 13B12. Interactive gaming certificate required and content of 33 petition. 34 13B13. 35 13Bl4. 36 13B15.

Issuance of interactive gaming certificate. Interactive gaming operators. Interactive gaming certificate and license.

37 13Bl6. Timing of initial interactive gaming authorizations. 38 § 13Bll. Authorization to conduct interactive gaming. 39 (a) Authority of board.--40 {l) The board may authorize a slot machine licensee: 41 (i) To conduct interactive gaming, including 42 contests and tournaments and any other game which is 43 determined by the board to be suitable for interactive 44 gaming. 45 (ii) To deploy interactive gaming skins or Internet 46 websites to facilitate the conduct of interactive gaming 47 activities. 48 (2) Except as provided in this part, all individuals 49 playing authorized interactive games must be physically SO located within this Commonwealth or within a state or 51 jurisdiction in which the board has entered an interactive

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1 gaming reciprocal agreement. No individual under 21 years of 2 age shall open, maintain, use or have access to an 3 interactive gaming account. 4 (b) Authority to play interactive games.--Notwithstanding 5 any other provision of law, an individual who is 21 years of age 6 or older is hereby permitted to participate as a registered 7 player in interactive gaming and wagering associated with 8 playing an authorized interactive game offered by an interactive 9 gaming certificate holder in accordance with regulations of the

10 board. 11 § 13B12. Interactive gaming certificate required and content of 12 petition. 13 (a) Certificate reguired.--No slot machine licensee or any 14 other person associated with or representing a slot machine 15 licensee shall operate or conduct or attempt to operate or 16 conduct interactive gaming, except for test purposes or open 17 interactive gaming to the public in this Commonwealth without 18 first obtaining an interactive gaming certificate from the 19 board. A slot machine licensee may seek approval to conduct 20 interactive gaming by filing a petition for an interactive 21 gaming certificate with the board. The board shall prescribe the 22 form and manner to govern the submission of a petition for an 23 interactive gaming certificate. Not more than one interactive 24 gaming certificate shall be issued to operate interactive gaming 25 within a licensed facility in this Commonwealth. 26 (b) Content of petition.--In addition to information and 27 documentation demonstrating that the slot machine licensee is 28 qualified for an interactive gaming certificate under this 29 chapter, a petition seeking board approval to conduct 30 interactive gaming within this Commonwealth shall include the 31 fo l lowing: 32 (1) The name, business address and contact information 33 of the slot machine licensee. 34 (2) The name. business address and contact information 35 of any interactive gaming affiliate. interactive gaming 36 operator or other person that will be a party to an agreement 37 related to the operation of interactive gaming or an 38 interactive gaming system on behalf of a slot machine 39 licensee. 40 (3) The name and business address, job title and a 41 photograph of each principal and key employee of the slot 42 machine licensee who will be involved in the conduct of 43 interactive gaming and who is not currently licensed by the 44 board, if known. 45 (4) The name and business address, job title and a 46 photograph of each principal and key employee of the slot 47 machine licensee, interactive gaming affiliate or interactive 48 gaming operator who will be involved in the conduct of 49 interactive gaming and who is currently licensed by the 50 board. 51 (5) An itemized list of the interactive games and any

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1 other game or games the slot machine licensee plans to offer 2 over the Internet for which authorization is being sought. 3 The slot machine licensee shall, in accordance with 4 regulations promulgated by the board, file any changes in the 5 number of authorized interactive games offered through 6 interactive gaming with the board. 7 (6) The estimated number of full-time and oart-time a employment positions that will be created at the licensed 9 facility if interactive gaming is authorized and an updated

10 hiring plan under section 1510(a) (relating to labor hiring 11 preferences) which outlines the slot machine licensee's plan 12 to promote the representation of diverse groups and 13 Commonwealth residents in the employment positions. 14 (7) A brief description of the economic benefits 15 expected to be realized by the Commonwealth, its 16 municipalities and its residents if interactive gaming is 17 authorized. 18 (8) The details of any financing obtained or that will 19 be obtained to fund an expansion or modification of the 20 licensed facility to accommodate interactive gaming and to 21 otherwise fund the cost of commencing interactive gaming. 22 (9) Information and documentation concerning financial 23 background and resources, as the board may require, to 24 establish by clear and convincing evidence the financial 25 stability, integrity and responsibility of the slot machine 26 licensee, and information or documentation concerning any 27 interactive gaming affiliate or interactive gaming operator 28 that will operate interactive gaming or an interactive gaming 29 system on behalf of the slot machine licensee, as the board 30 may require. 31 (10) Information and documentation, as the board mav 32 require, to establish by clear and convincing evidence that 33 the slot machine licensee has sufficient business ability and 34 experience to conduct a successful interactive gaming 35 operation. In making this determination, the board may 36 consider the results of the slot machine licensee's slot 37 machine and table game operations, including financial 38 information, employment data and capital investment. 39 (11) Information and documentation, as the board may 40 require, to establish by clear and convincing evidence that 41 the slot machine licensee has or will have the financial 42 ability to pay the interactive gaming authorization fee. 43 (12) Detailed site plans identifying the proposed 44 interactive gaming restricted area where interactive gaming 45 operations will be managed or administered as approved by the 46 board. 47 (13) A detailed description of all of the following: 48 (i) The slot machine licensee's initial system of 49 internal and accounting controls applicable to so interactive gaming. 51 (ii) The slot machine licensee's proposed standards

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1 to protect, with a reasonable degree of certainty, the 2 privacy and security of its registered players. 3 (iii) How the slot machine licensee will facilitate 4 compliance with all of the requirements set forth in this 5 chapter and in section 802(a) of the Unlawful Internet 6 Gambling Enforcement Act of 2006 (Public Law 109-347, 31 7 u.s.c. § 5362(10) (B)), including, but not limited to, all a of the following: 9 (A) Age, identit y and location verification

10 requirements designed to block access to individuals 11 under 21 years of age. 12 (B) Appropriate data security standards to 13 prevent unauthorized access by any person whose age, 14 identity and l ocation have not been verified or whose 15 age, identity and l ocation cannot be verified in 16 accordance with this chapter and applicable 17 regulations of the board . 18 (C) Except as provided in this chapter, the 19 requirement that all wagers made in the conduct of 20 interactive gaming be initiated and received or 21 otherwise made exclusively within this Conunonwealth. 22 (iv) The slot machine licensee•s proposed age, 23 identity and location verification standards designed to 24 block access to persons under 21 years of age and persons 25 excluded or prohibited from participating in interactive 26 gaming under this chapter. 27 (v) The procedures the slot machine licensee will 28 use to register individuals who wish to participate in 29 interactive gaming. 30 (vi) The procedures the slot machine licensee will 31 use to establish interactive gaming accounts for 32 registered players. 33 (vii) The interactive games and services the slot 34 machine licensee proposes to offer to registered players. 35 (viii} Documentation and information relating to all 36 proposed subcontractors of the slot machine licensee, 37 including, but not limited to, all of the following: 38 (A) A description of the services to be provided 39 by each subcontractor. 40 (B) Information on the experience and 41 qualifications of each subcontractor to provide the 42 services anticipated. 43 (C) The names of all proposed subcontractors, 44 owners, executives and employees that will be 45 directly or indirectly involved in the slot machine 46 licensee's interactive gaming operations, as well as 47 sufficient personal identifying information on each 48 such person to conduct background checks as may be 49 required by the board. 50 (14} The interactive gaming devices and associated 51 equipment, including the interactive gaming network,

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1 interactive qaminq system or systems, that the slot machine 2 licensee plans to or will utilize to manage, administer or 3 control its interactive gaming operations. 4 (15) Compliance certification of its interactive gaming 5 devices and associated equipment, including interactive 6 gaming software and hardware, by a board-approved gaming 7 laboratory to ensure that the gaming software and hardware 8 comply with the requirements of this chapter and regulations 9 of the board.

10 (16) Detailed description of accounting systems, 11 including, but not limited to, accounting systems for all of 12 the following: 13 (i) Interactive gaming accounts. 14 (ii) Per-hand charges, if applicable. 15 (iii) Transoarencv and reporting to the board and 16 the department. 17 (iv) Distribution of revenue to the Commonwealth and 18 winnings to registered players. 19 (v) Ongoing auditing and internal control compliance 20 reviews. 21 (17) Detailed information on security svstems at the 22 licensed facility to protect the interactive gaming skins or 23 Internet website from internal and external breaches and 24 threats. 25 (18) Any other information the board may require. 26 (c) Confidentiality.--Information submitted to the board 27 under subsection (b) may be considered confidential by the board 28 if the information would be confidential under section 1206(£) 29 (relating to board minutes and records) . 30 § 13B13. Issuance of interactive qaminq certificate. 31 (a) Requirements for approval of petition.--32 (1) The board may approve a petition under section 13B12 33 (relating to interactive gaming certificate reauired and 34 content of petition) upon finding clear and convincing 35 evidence of all of the following: 36 (i) The slot machine licensee's conduct of 37 interactive gaming complies in all respects with the 38 requirements of this chapter and regulations promulgated 39 by the board. 40 (ii) Aqe, identity and location verification 41 requirements designed to block access to individuals 42 under 21 years of age and persons otherwise prohibited 43 from engaging in interactive gaming in accordance with 44 this chapter, as approved by the board, have been 45 implemented by the slot machine licensee. 46 (iii) The slot machine licensee has implemented or 47 will implement appropriate data security standards to 48 prevent unauthorized access by any person whose age, 49 identity and location has not been verified or cannot be 50 verified in accordance with the regulations promulgated 51 and adopted by the board.

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1 (iv) The slot machine licensee has implemented or 2 will implement appropriate standards to protect the 3 privacy and security of registered players. 4 (v) The slot machine licensee's initial system of 5 internal and accounting controls applicable to 6 interactive gaming, and the security and integrity of all 7 financial transactions in connection with the system, a complies with t his chapter and regulations promulgated 9 and adopted by the board.

10 (vi) The slot machine licensee is in good standing 11 with the board. 12 (vii) The slot machine licensee agrees that the 13 number of slot machines and table games in operation at 14 its licensed facility, as of the effective date of this 15 section, will not be reduced as a result of the 16 authorization and commencement of interactive gaming. 17 (2) It shall be an express condition of any interactive 18 gaming certificate that a slot machine licensee shall 19 collect, report and pay all applicable taxes and fees and 20 shall maintain all books, records and documents pertaining to 21 the slot machine licensee's interactive gaming operations in 22 a manner and location within this Commonwealth as approved by 23 the board. All books, records and documents shall be 24 immediately available for inspection by the board and the 25 department during all hours of operation in accordance with 26 the regulations of the board and shall be maintained in a 27 manner and during periods of time as the board shall require. 28 (b) Issuance of interactive gaming certificate.--29 (1) Upon approval of a petition for an interactive 30 gaming certificate, the board shall issue an interactive 31 gaming certificate to the slot machine licensee. The issuance 32 of an interactive gaming certificate prior to the full 33 payment of the authorization fee required under section 13B51 34 (relating to interactive gaming authorization fee) shall not 35 relieve the slot machine licensee from the obligation to pay 36 the authorization fee in accordance with the requirements of 37 section 13BS1. 38 (2) Upon issuing an interactive gaming certificate, the 39 board shall amend the slot machine licensee's statement of 40 conditions to include conditions pertaining to the 41 requirements of this chapter. 42 (c) Term of interactive gaming certificate.--Subject to the 43 power of the board to deny, revoke or suspend an interactive 44 gaming certificate issued in accordance with the requirements of 45 this section, an interactive gaming certificate shall be renewed 46 every five years and shall be subject to the requirements of 47 section 1326 (relating to renewals) . 48 (d) Sanctions.--A slot machine licensee that fails to abide 49 by the requirements of this chapter or any condition contained 50 in the slot machine licensee's statement of conditions governing 51 the operation of interactive gaming shall be subject to board-

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1 imposed administrative sanctions or other penalties authorized 2 under this part. The imposition of administrative sanctions in 3 accordance with this subsection shall apply to any interactive 4 gaming operator that fails to abide by the requirements of this 5 chapter and regulations of the board. 6 (e) Background investigations.--Each petition for an 7 interactive gaming certificate shall be accompanied by a a nonrefundable fee established by the board to cover the cost of 9 background investigations. The board shall determine by

10 regulation the persons involved, directly or indirectly, in a 11 slot machine licensee's interactive gaming operations and 12 persons involved in the operations of an interactive gaming 13 affiliate and interactive gaming operator who shall be subject 14 to background investigation. The reasonable and necessary costs 15 and expenses incurred in any background investigation or other 16 investigation or proceeding under this chapter shall be 17 reimbursed to the board. 18 § 13B14. Interactive gaming operators. 19 (a) License reguired.--No person shall serve or attempt to 20 serve as an interactive gaming operator without first obtaining 21 an interactive gaming license from the board. A person may seek 22 approval to serve as an interactive gaming operator by filing an 23 application with the board. The board shall prescribe the form 24 and manner to govern the submission of an application for an 25 interactive gaming license. The board shall provide for the 26 licensure of interactive gaming operators that operate 27 interactive gaming or an interactive gaming system on behalf of 28 an interactive gaming certificate holder. The board shall: 29 (1) Determine suitability and provide for the licensure, 30 permitting, registration or certification, as it deems 31 appropriate, of interactive gaming operators or other persons 32 directly involved in the operation of interactive gaming or 33 an interactive gaming system on behalf of a slot machine 34 licensee. The board shall determine suitability in accordance 35 with the applicable requirements of this part, provided that 36 the board may extend suitability to a holder of a valid 37 license, permit, registration, certificate or other 38 authorizations approved and issued under this part. which is 39 in good standing, without additional investigation. 40 (2) Provide for the approval of the terms and conditions 41 of all agreements entered into by or between an interactive 42 gaming certificate holder and an interactive gaming operator 43 or any other person related to the operation of interactive 44 games or an interactive gaming system on behalf of the 45 interactive gaming certificate holder. 46 (b) Classification and approval of employees.--47 (1) The board shall establish a classification system 48 for employees of interactive gaming operators or other 49 persons who provide products or services associated with or 50 related to interactive gaming, interactive gaming platforms 51 and interactive gaming systems.

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1 (2) The board shall provide for the licensure, 2 permitting, registration or certification, as it deems 3 appropriate, of employees in each employee classification 4 established by it in accordance with paragraph (1) . 5 (c) Applicability of certain provisions.--Interactive gaming 6 operators shall be subject to the applicable provisions of this 7 part that apply to interactive gaming certificate holders. 8 (d) Operators owned, controlled by slot machine licensee.--9 This section shall not apply to an interactive gaming operator

10 that is owned or otherwise controlled by a slot machine licensee 11 that has been approved for and issued an interactive gaming 12 certificate under this chapter. 13 (e) Interactive gaming license and conditional 14 authorization.--15 (1) The following shall apply: 16 (i) During the first 18 months after the effective 17 date of this section, the board may issue conditional 18 authorizations to persons seeking licensure as 19 interactive gaming operators. 20 (ii) Conditional authorization awarded to an 21 interactive gaming operator may remain in effect until 22 the shorter of 12 months after the date of issue or the 23 date by which the board considers the subject 24 application. 25 (iii) Conditional authorization may be renewed by 26 the board not more than once, upon a showing of good 27 cause. 28 (iv) Conditional authorization shall allow an 29 applicant for an interactive qaminq license to engage in 30 all of the functions of a licensed interactive gaming 31 operator for the duration of the conditional 32 authorization. 33 (2) No conditional authorization may be issued unless: 34 (i) The applicant has submitted a complete 35 application for an interactive gaming license to the 36 board. 37 (ii) The applicant agrees to oav or has paid the fee 38 prescribed in section 13B51 (relating to interactive 39 gaming authorization fee) prior to the issuance of the 40 temporary authorization, which may be refundable in the 41 event the license is not approved and issued by the 42 board. 43 (iii) The bureau has no objection to the issuance of 44 a conditional authorization to the applicant. 45 (3) Within 45 days of the date that the bureau receives 46 the completed application for an interactive gaming license 47 from an applicant for investigation, the bureau shall conduct 48 a preliminary investigation of the applicant and any key 49 interactive gaming employee of the applicant, as determined SO by the board, which shall include a criminal background 51 investigation of the applicant and any interactive gaming

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1 2 3 4 5 6 7 8 9

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 so 51

§

employees of the applicant, as determined by the board and under section 1202(b) (relating to general and specific powers) .

(4) If the bureau's preliminary investigation discloses no adverse information that would impact suitability for licensure. the bureau shall provide the board with a statement of no objection to issuance of conditional authorization to the applicant.

(S) If the bureau's preliminary investigation discloses adverse information that would impact suitability for licensure, it shall register an objection and no conditional authorization may be issued until the bureau's concerns are resolved.

(6) Any conditional authorization approved and issued to an applicant for an interactive gaming license under this subsection may be suspended or withdrawn by the board upon a showing of good cause by the bureau .

13Bl5. Interactive gaming certificate and license. The following shall apply :

(1) An interactive gaming certificate and interactive gaming license shall be in effect unless:

(i) The certificate or license is suspended or revoked by the board consistent with the requirements of this part.

(ii) The slot machine license is suspended, revoked or not renewed by the board consistent with the requirements of this part.

(iii) The slot machine licensee relinquishes or does not seek renewal of its slot machine license.

(iv) The slot machine licensee does not seek renewal of its interactive gaming certificate. (2) The interactive gaming certificate may include an

initial itemized list by number and type of authorized interactive games for interactive gaming to be conducted by the interactive gaming certificate holder or interactive gaming operator or other person on behalf of an interactive gaming certificate holder. The slot machine licensee may increase or decrease the number of interactive games authorized for play on its interactive gaming skin or Internet website or change the type of authorized interactive games played on its interactive gaming skin or Internet website upon notice , if required by the board, to the board and approval by the board or a designated employee of the board. Unless approved by the board or a designated employee of the board, the total number and type of authorized interactive games offered for play by an interactive gaming certificate holder may not differ from the number and type approved by the board and authori zed in the interactive gaming certificate.

(3) A slot machine licensee shall be required to update the information in its initial interactive gaming petition at

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1 times and in the form and manner as prescribed by the board. 2 § 13B16. Timing of initial interactive gaming authorizations. 3 The board shall prescribe the date on which petitions for an 4 interactive gaming certificate must be filed with the board and 5 shall approve or deny a petition within 90 days following 6 receipt. 7 SUBCHAPTER C 8 CONDUCT OF INTERACTIVE GAMING 9 Sec.

10 13B21. 11 13B22 . 12 13B23 . 13

Situs of interactive gaming operations. Establishment of interactive gaming accounts. Interactive gaming account credits, debits, deposits and

payments. 14 13B24 . Acceptance of account wagers. 15 13B25. Dormant interactive gaming accounts. 16 13B26. Log-in procedure required. 17 13B27 . Information provided at login. 18 13B28 . Prohibitions. 19 13B29 . Commencement of interactive gaming operations. 20 § 13B21. Situs of interactive gaming operations. 21 Except as provided in this chapter. all wagers made through 22 interactive gaming shall be deemed to be initiated, received or 23 otherwise made within the geographic boundaries of this 24 Commonwealth. The intermediate routing of electronic data 25 associated or in connection with interactive gaming shall not 26 determine the location or locations in which a bet or wager is 27 initiated, received or otherwise made. 28 § 13B22. Establishment of interactive gaming accounts. 29 (a) Registration restrictions.--Only a natural person who 30 has first established an interactive gaming account shall be 31 permitted to play an authorized interactive game or place any 32 bet or wager associated with an authorized interactive game. An 33 interactive gaming account shall be in the name of a natural 34 person and may not be in the name of any beneficiary. custodian, 35 joint trust, corporation. partnership or other organization or 36 entity. An interactive gaming certificate holder shall not 37 permit an individual to establish an interactive gaming account 38 unless the person is 21 years of age or older . 39 (b) Establishment of interactive gaming accounts.--40 (1) An interactive gaming account may be executed in 41 person, provided that the board shall, through regulations, 42 provide procedures for the establishment of interactive 43 gaming accounts over the Internet. Each interactive gaming 44 account shall comply with the internal controls of the 45 interactive gaming certificate holder that, at a minimum, 46 require the following: 47 (i) The filing and execution of an interactive 48 gaming account application. the form of which has been 49 preapproved by the board . so (ii) Proof of age, i dentity and residency as 51 demonstrated by at l east two forms of identification

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1 approved by the board through regulation. 2 (iii} Physical address or the principal residence of 3 the prospective account holder, e-mail address of the 4 prospective account holder and other contact information, 5 as the board or interactive gaming certificate holder may 6 require. 7 (iv} Password or other secured identification a provided by the slot machine licensee to access the 9 interactive gaming account or some other mechanism

10 approved by the board to authenticate the player as the 11 holder to the interactive gaming account. 12 (v) An acknowledgment under penalty of periury that 13 false or misleading statements made in regard to an 14 application for an interactive gaming account may subject 15 the applicant to civil and criminal penalties. 16 (2) The interactive gaming certificate holder may accept 17 or reject an application after receipt and review of the 18 application and proof of age and identity for compliance with 19 the provisions of this chapter. The interactive gaming 20 certificate holder shall have the right, at any time with or 21 without cause, to suspend or close any interactive gaming 22 account at its sole discretion. 23 (3) The address provided by the applicant in the 24 application for an interactive gaming account shall be deemed 25 the proper address for the purposes of mailing checks, 26 account withdrawals, notices and other materials. 27 (4) An interactive gaming account shall not be 28 assignable or otherwise transferable and an interactive 29 gaming certificate holder may, at any time, declare all or 30 any part of an interactive gaming account to be closed for 31 wagering. 32 (c) Password reguired.--As part of the application process, 33 the interactive gaming certificate holder shall provide the 34 prospective interactive gaming account holder with a password to 35 access the interactive gaming account or shall establish some 36 other method approved by the board to authenticate the 37 individual as the holder of the interactive gaming account and 38 allow the registered player access to the interactive gaming 39 account. 40 (d) Grounds for rejection . --Any individual who provides 41 false or misleading information in the application for an 42 interactive gaming account may be subject to rejection of the 43 application or cancellation of the account by the interactive 44 gaming certificate holder. 45 (e) Suspension of interactive gaming account.--The 46 interactive gaming certificate holder shall have the right to 47 suspend or close any interactive gaming account at its 48 discretion. 49 (f) Persons prohibited from establishing or maintaining an 50 interactive gaming account.--The following persons shall not be 51 entitled to establish or maintain an interactive gaming account:

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1 (1) Any person under 21 years of age. 2 (2) Any person on the list of persons who are or will be 3 excluded or ejected from or denied access to any licensed 4 facility under section 1514 (relating to regulation requiring 5 exclusion, ejection or denial of access of certain persons), 6 1515 (relating to repeat offenders excludable from licensed 7 gaming facility) or 1516 (relating to list of persons self 8 excluded from gaming activities) . 9 (3) Any gaming employee, key employee or principal

10 employee of a slot machine licensee and any employee or key 11 employee of an interactive gaming operator or any other 12 person directly involved in the operation of interactive 13 gaming or an interactive gaming system on behalf of a slot 14 machine licensee. 15 § 13B23. Interactive gaming account credits, debits, deposits 16 and payments. 17 {a) Duty of board.--The board shall, by regulation, develop 18 procedures to govern credits. debits and deposits to interactive 19 gaming accounts. Notwithstanding any provision of this part to 20 the contrary, all credits, debits and deposits to interactive 21 gaming accounts shall be made in accordance with regulations 22 promulgated by the board, in consultation with the department, 23 and all payments of winnings shall be made in accordance with 24 the rules of each particular authorized interactive game. 25 (b) Rights of interactive gaming certificate holder.--An 26 interactive gaming certificate holder shall have the right to: 27 (1) Credit an interactive gaming account as part of a 28 promotion. 29 (2) Refuse all or part of any wager or deposit to the 30 interactive gaming account of a registered player. 31 (c) Interest prohibited.--Funds deposited in a registered 32 player's interactive gaming account shall not bear interest to 33 the account holder. 34 § 13B24. Acceptance of account wagers. 35 (a) Acceptance.--An interactive gaming certificate holder 36 may accept interactive gaming wagers or bets only as follows: 37 (1) The wager shall be placed directly with the 38 interactive gaming certificate holder by the registered 39 player, after the interactive gaming certificate holder has 40 verified that the individual seeking to place a wager or bet 41 is the registered player. 42 (2) The registered player provides the slot machine 43 licensee with the correct password or other authentication 44 information for access to the interactive gaming account. 45 (b) Nonacceptance.--An interactive gaming certificate holder 46 may not accept an account wager in an amount in excess of funds 47 on deposit in an interactive gaming account of the registered 48 player placing the bet or wager. Funds on deposit include 49 amounts credited to an account holder's interactive gaming SO account in accordance with regulations of the board and any 51 funds in the account at the time the wager is placed.

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1 § 13B25. Dormant interactive gaming accounts. 2 Before closing a dormant interactive gaming account, the 3 interactive gaming certificate holder shall attempt to contact 4 the interactive gaming account holder by mail and phone or e­s mail to inform the account holder that the interactive gaming 6 account is inactive and may be subject to termination at such 7 time and manner as determined by regulation of the board. 8 § 13B26. Log-in procedure required. 9 Each interactive gaming certificate holder shall establish a

10 log-in procedure for registered players to access interactive 11 gaming. The log-in procedure shall include the provision of the 12 appropriate authentication information by the registered player 13 for access to the interactive gaming account. The interactive 14 gaming certificate holder shall not allow a registered player to 15 log in and access the interactive gaming account unless the 16 correct password or other authentication information is 17 provided. 18 § 13B27. Information provided at login. 19 The interactive gaming certificate holder shall configure its 20 interactive gaming skin to include a link that, upon login, will 21 allow a registered player to access all of the following 22 information: 23 (1) The current amount of funds in the interactive 24 gaming account. 25 (2) The wins and losses since the interactive gaming 26 account was established. 27 (3) The wins and losses at the beginning of the current 28 gaming session and the wins and losses at the end of the 29 current gaming session . 30 (4) The complete text in searchable format of the rules 31 of each authorized interactive game offered by the 32 interactive gaming certificate holder and any other 33 information as the board may require. 34 § 13B28. Prohibitions. 3S Except as provided in this part, no interactive gaming 36 certificate holder or any person licensed under this part to 37 operate interactive gaming or an interactive gaming system and 38 no person acting on behalf of, or under any arrangement with, an 39 interactive gaming certificate holder or other person licensed 40 under this part shall: 41 (1) Make any loan to any person for the purpose of 42 crediting an interactive gaming account. 43 (2) Release or discharge any debt, either in whole or in 44 part, or make any loan which represents any losses incurred 45 by any registered player while playing authorized interactive 46 games without maintaining a written record thereof in 47 accordance with regulations of the board. 48 § 13B29. Conunencement of interactive gaming operations. 49 An interactive gaming certificate holder may not operate or SO offer interactive games for play on its interactive gaming skin Sl until the board determines that:

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1 (1) The interactive gaming certificate holder is in 2 compliance with the requirements of this chapter. 3 (2) The interactive gaming certificate holder's 4 internal, administrative and accounting controls are 5 sufficient to meet the requirements of section 13B32 6 (relating to internal, administrative and accounting 7 controls) . a (3) The interactive gaming certificate holder's 9 interactive gaming employees, where applicable, are licensed,

10 permitted, registered, certified or otherwise authorized by 11 the board to perform their respective duties. 12 (4) The employees of the interactive gaming operator 13 are, where applicable, licensed, permitted or otherwise 14 authorized by the board to perform their duties. 15 (5) The interactive gaming certificate holder is 16 prepared in all respects to of fer interactive gaming to the 17 public over its interactive gaming skin. 18 (6) The interactive gaming certificate holder has 19 implemented necessary internal, administrative and accounting 20 controls, security arrangements and surveillance systems for 21 the operation of interactive gaming. 22 (7) The interactive gaming certificate holder is in 23 compliance with or will comply with section 13B31 (relating 24 to responsibilities of interactive gaming certificate 25 holder) . 26 (8) The board has approved an agreement entered between 27 the interactive gaming certificate holder and an interactive 28 gaming operator or other person related to the operation of 29 interactive gaming or the operation of an interactive gaming 30 system on behalf of such interactive gaming certificate 31 holder. 32 SUBCHAPTER D 33 FACILITIES AND EQUIPMENT 34 ~ 35 13B31. 36

Responsibilities of interactive gaming certificate holder.

37 13B32. Internal, administrative and accounting controls. 38 § 13B31. Responsibilities of interactive gaming certificate 39 holder. 40 (a) Facilities and eguipment.--All facilities and 41 interactive gaming devices and associated equipment shall: 42 (1) Be arranged in a manner promoting appropriate 43 security for interactive gaming. 44 (2) Include a closed-circuit video monitoring system 45 according to rules or specif i cations approved by the board, 46 with board absolute access to the interactive gaming 47 certificate holder's interactive gaming skin, Internet 48 website and platform, signal or transmission used in 49 connection with interactive gaming. 50 (3) Not be designed in any way that might interfere with 51 or impede the board in its regulation of interactive gaming.

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l (4) Comply in all respects with regulations of the 2 board . 3 (b) Location of equipment and interactive gaming restricted 4 areas.--5 (1) All interactive gaming devices and associated 6 equipment used by an interactive gaming certificate holder or 7 an interactive gaming licensee to conduct interactive gaming 8 may be located, with the prior approval of the board, in an 9 interactive gaming restricted area on the premises of the

10 licensed facility, in an interactive gaming restricted area 11 within the geographic limits of the county in this 12 Commonwealth where the licensed facility is situated or in 13 any other area approved by the board. 14 (2) All wagers associated with interactive gaming shall 15 be deemed to be placed when received by the interactive 16 gaming certificate holder . Any intermediate routing of 17 electronic data in connection with a wager shall not affect 18 the fact that the wager is placed in a licensed facility in 19 this Commonwealth . 20 § 13B32. Internal, administrative and accounting controls. 21 (a) Submissions to board.--Notwithstanding any provision of 22 this part, each slot machine licensee who holds or has applied 23 for an interactive gaming certificate in accordance with this 24 chapter shall submit a description of its system of internal 25 procedures and administrative and accounting controls for 26 interactive gaming to the board, including provisions that 27 provide for real-time monitoring, recordation or storage of all 28 interactive games and a description of any changes to its 29 procedures and controls . The submission shall be made at least 30 90 days before authorized interactive gaming is to commence or 31 at least 90 days before any change in those procedures or 32 controls is to take effect, unless otherwise directed by the 33 board. 34 (b) Filing.--Notwithstanding subsection (a) , the procedures 35 and controls may be implemented by an interactive gaming 36 certificate holder upon the filing of the procedures and 37 controls with the board . Each procedure or control submission 38 shall contain both narrative and diagrammatic representations of 39 the system to be utilized with regard to interactive gaming, 40 including, but not limited to: 41 {1} Accounting controls. including the standardization 42 of forms and definition of terms to be utilized in the 43 Internet gaming operations. 44 (2) Procedures, forms and, where appropriate, formulas 45 to govern the following: 46 {i) calculation of hold percentages; 47 {ii) revenue drops; 48 (iii) expense and overhead schedules; 49 {iv} complimentary services; and SO (v) cash-equivalent transactions . 51 (3) Job descriptions and the system of personnel and

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1 chain of command, establishing a diversity of responsibility 2 among employees engaged in interactive gaming operations, 3 including employees of an interactive gaming operator, and 4 identifying primary and secondary management and supervisory 5 positions for areas of responsibility, salary structure and 6 personnel practices. 7 (4) Procedures for the registration of players and a establishment of interactive gaming accounts, including a 9 procedure for authenticating the age, identity and location

10 of applicants for gaming accounts. 11 (5) Procedures for terminating a reqistered plaver•s 12 interactive gaming account and the return of any funds 13 remaining in the interactive gaming account to the registered 14 player. 15 (6) Procedures for suspending or terminating a dormant 16 gaming account. 17 (7) Procedures for the logging in and authentication of 18 a registered player in order to enable the player to commence 19 interactive gaming and the logging off of the registered 20 player when the player has completed play, including a 21 procedure to automatically log a registered player out of the 22 player's interactive gaming account after a specified period 23 of inactivity. 24 (8) Procedures for the crediting and debiting of 25 registered players' interactive gaming accounts. 26 (9) Procedures for cashing checks, receiving electronic 27 negotiable instruments and for redeeming chips, tokens or 28 other cash equivalents. 29 (10) Procedures for withdrawing funds from an 30 interactive gaming account by the registered player. 31 (11) Procedures for the probation of player funds, 32 including the segregation of player funds from operating 33 funds. 34 (12) Procedures for recording transactions pertaining to 35 interactive gaming. 36 (13) Procedures for the security of personal identifying 37 information of registered players and other information as 38 required by the board and funds in interactive gaming 39 accounts . 40 (14) Procedures and security for the calculation and 41 recordation of revenue. 42 (15) Procedures for the securitv of interactive gaming 43 devices and associated equipment within an interactive gaming 44 restricted area on the premises of the licensed facility or 45 in a secure facility inaccessible to the public and 46 specifically designed for that purpose off the premises of a 47 licensed facility as approved by the board. 48 (16) Procedures and security standards as to receipt of 49 and the handling and storage of interactive gaming devices 50 and associated equipment. 51 (17) Procedures and security standards to protect the

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1 interactive qaminq certificate holder's interactive gaming 2 skin or Internet website and interactive gaminq devices and 3 associated equipment from hacking or tampering by any person. 4 (18} Procedures for responding to suspected or actual 5 hacking or tampering with an interactive gaming certificate 6 holder's interactive gaming skin or Internet website and 7 interactive gaming devices and associated equipment, 8 including partial or complete suspension of interactive 9 qaming or the suspension of any or all interactive gaming

10 accounts when warranted. 11 (19} Procedures to verify each registered player's 12 physical location each time a wager is placed on an 13 interactive game. 14 (20} Procedures to ensure, to a reasonable degree of 15 certainty, that the interactive games are fair and honest and 16 that appropriate measures are in place to deter, detect and, 17 to the extent reasonably possible. to prevent cheating, 18 including collusion, and use of cheating devices, including 19 the use of software programs that make bets or wagers 20 according to algorithms. 21 (21) Procedures to assist problem and compulsive 22 gamblers, including procedures reasonably intended to prevent 23 a person from participating in interactive gaming activities 24 in accordance with sections 1514 (relating to regulation 25 requiring exclusion, ejection or denial of access of certain 26 persons) , 1515 (relating to repeat offenders excludable from 27 licensed gaming facility) and 1516 (relating to list of 28 persons self excluded from qaming activities) . 29 {c) Review of submissions . --30 (1} The board shall review each submission required by 31 subsections (a) and (b} and shall determine whether the 32 submission conforms to the requirements of this chapter and 33 regulations promulgated by the board and whether the system 34 submitted provides adequate and effective controls for 35 interactive gaming of the particular interactive gaming 36 certificate holder. 37 (2) If the board determines that insufficiencies exist, 38 it shall specify the insufficiencies in writing to the 39 interactive qaming certificate holder, who shall make 40 appropriate alterations to ensure compliance with the 41 requirements of this chapter and regulations of the board. 42 When the board determines a submission to be adequate in all 43 respects. it shall notify the interactive gaming certificate 44 holder. 45 (3) Except as otherwise provided in subsection (a), no 46 interactive gaming certificate holder, interactive gaming 47 operator or other person shall conunence or alter interactive 48 gaming operations unless and until the system of procedures, 49 controls and alternations is approved by the board. 50 SUBCHAPTER E 51 TESTING AND CERTIFICATION

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1 2 3 4 5 6 7 8 9

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47

Sec. 13B41.

§ 13B41.

Interactive games and interactive gaming devices and associated equipment testing and certification standards.

Interactive games and interactive gaming devices and associated equipment testing and certification standards.

(a) Testing required.--(1) No interactive game or interactive gaming device or

associated equipment shall be used to conduct interactive gaming unless it has been tested and approved by the board. The board may, in its discretion and for the purpose of expediting the approval process, refer testing to any testing laboratory as approved by the board.

(2) The board shall establish, by regulation, technical standards for approval of interactive games and interactive gaming devices and associated equipment, including standards to govern mechanical, electrical or program reliability and security against tampering and threats, as it may deem necessary to protect the registered player from fraud or deception and to ensure the integrity of interactive gaming. (b) Independent testing and certification facility.--Any

costs associated with the board's testing and certification facility shall be assessed on persons authorized by the board to manufacture, supply, distribute or otherwise provide interactive games and interactive gaming devices and associated equipment to interactive gaming certificate holders or to interactive gaming operators in this Commonwealth. The costs shall be assessed in accordance with a schedule adopted by the board.

(c) Use of other state standards.--The board may determine whether the testing and certification standards for interactive games and interactive gaming devices and associated equipment as adopted by another jurisdiction within the United States or any of the testing and certification standards used by an interactive gaming certificate holder are comprehensive and thorough and provide similar and adequate saf eqµards as those required by this chapter. If the board makes that determination, it may permit the person authorized to manufacture, supply, distribute or otherwise provide interactive games and interactive gaming devices and associated equipment to furnish interactive games and interactive gaming devices and associated equipment to interactive gaming certificate holders in this Commonwealth without undergoing the full testing and cer tificat i on process by the board's independent testing and certif i cation facility .

SUBCHAPTER F TAXES AND FEES

48 Sec. 49 13BS1. SO 13B52. 51 13B53.

I nteractive gaming authorization fee. Interactive gaming tax. Local share assessment.

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1 13B54. Compulsive and problem gambling. 2 § 13B51. Interactive gaming authorization fee. 3 (a) Amount of authorization fee.--4 (1) Each slot machine licensee that is issued an 5 interactive gaming certificate to conduct interactive gaming 6 in accordance with section 13811 (relating to authorization 7 to conduct interactive gaming) shall pay a one-time 8 nonrefundable authorization fee in the amount of $8,000,000. 9 (2) Each interactive qaminq operator or an affiliate of

10 an interactive gaming certificate holder that is issued an 11 interactive gaming license under this chapter to operate 12 interactive gaming or an interactive gaming system on behalf 13 of a slot machine licensee pursuant to an interactive gaming 14 agreement and that is not owned or otherwise controlled by a 15 slot machine licensee shall pay a one-time nonrefundable 16 authorization fee in the amount of $2,000,000. 17 (b) Payment of fee.--Persons required to pay the 18 authorization fee under subsection (a) shall remit the fee to 19 the board within 60 days of the board's approval of its 20 petition, license or conditional license to conduct interactive 21 gaming or to operate interactive gaming or an interactive gaming 22 system. The board may allow the fee to be paid in installments, 23 provided that all such installments are paid within the 60-day 24 period and that the installment payments are made in accordance 25 with the terms of an agreement between the board and the 26 interactive gaming certificate holder, an affiliate of an 27 interactive gaming certificate holder or an interactive gaminq 28 operator that sets forth the terms of the installment payment. 29 (c) Renewal fee.--30 (1) Notwithstandinq anv other provision of this chapter, 31 an interactive gaming certificate holder shall pay a renewal 32 fee in the amount of $250,000 upon the renewal of its 33 interactive gaming certificate in accordance with sections 34 1326 (relating to renewals) and 13B13(c) (relating to 35 issuance of interactive gaming certificate). 36 (2) Each interactive gaming operator or affiliate of an 37 interactive gaming operator under subsection (a) (3) shall pay 38 a renewal fee of $100,000 upon the renewal of its interactive 39 gaming license in accordance with this chapter. 40 (d) Deposit of fees.--The fees imposed and collected under 41 this section shall be deposited in the General Fund. 42 § 13852. Interactive qaming tax. 43 (a) Imposition of tax.--Each interactive gaming certificate 44 holder that conducts interactive gaming at a licensed facility 45 shall report to the department and pay from its daily gross 46 interactive gaming revenue, on a form and in the manner 47 prescribed by the department, a tax of 14% of its daily gross 48 interactive gaming revenue and a local share assessment as 49 provided in section 13B53 (relating to local share assessment) . so (b) Deposits and distributions.--51 (1) The tax imposed under subsection (a) shall be

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1 payable to the department on a weekly basis and shall be 2 based upon gross interactive gaming revenue derived during 3 the previous week. 4 (2) All funds owed to the Commonwealth under this 5 section shall be held in trust for the Commonwealth by the 6 interactive qaminq certificate holder until the funds are 7 paid to the department for deposit in the General Fund. An 8 interactive gaming certificate holder shall establish a 9 separate bank account into which gross interactive gaming

10 revenue shall be deposited and maintained until such time as 11 the funds are paid to the department under this section. 12 (c) Taxes on out-of-State wagering.--The tax rate which 13 shall be assessed and collected by the department with respect 14 to any wagers placed by registered players located in this 15 Commonwealth with an interactive gaming operator outside of this 16 Commonwealth, but authorized under an interactive gaming 17 reciprocal agreement shall be governed by the agreement but mav 18 not exceed 16% of gross interactive gaming revenue derived from 19 registered players located in this Commonwealth. 20 (d) Deposit of funds.--The tax imposed under subsection (a) 21 shall be collected by the department for deposit in the General 22 Fund. 23 § 13B53. Local share assessment. 24 (a) Required payrnent.--25 (1) In addition to the tax imposed under section 13852 26 (relating to interactive gaming tax) , each interactive gaming 27 certificate holder that conducts interactive gaming shall pay 28 on a weekly basis and on a form and in a manner prescribed by 29 the department a local share assessment into a restricted 30 receipts account established in the Department of Community 31 and Economic Development to be used exclusively for grants to 32 all counties in this Commonwealth, to economic development 33 authorities or redevelopment authorities within each county, 34 for grants for economic development projects, community 35 improvement projects and other projects in the public 36 interest. 37 (2) The Department of Community and Economic Development 38 shall develop policies and procedures to govern the 39 distribution of grants from the local share assessment 40 established under paragraph (1) . The policies and procedures 41 shall be of sufficient scope to ensure equal access to grant 42 funds by all counties in this Commonwealth. 43 (b) Definitions.--As used in this section, the following 44 words and phrases shall have the meaning given to them in this 45 subsection: 46 "Local share assessment." Two percent of an interactive 47 gaming certificate holder's daily gross interactive gaming 48 revenue. 49 § 13B54. Compulsive and problem gambling. 50 The following shall apply: 51 (1) Each year, from the tax imposed in section 13B52

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1 2 3 4 5 6 7 8 9

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

(relating to interactive gaming tax), $2,000,000 or an amount equal to .002 multiplied by the total gross interactive gaming revenue of all active and operating interactive gaming certificate holders, whichever is greater, shall be transferred into the Compulsive and Problem Gambling Treatment Fund established in section 1509 (relating to compulsive and problem gambling program) .

(2) Each year, from the tax imposed in section 13B52, $2,000,000 or an amount equal to . 002 multiplied by the total gross interactive gaming revenue of all active and operating interactive gaming certificate holders, whichever is greater, shall be transferred to the Department of Health to be used for drug and alcohol addiction treatment services, including treatment for drug and alcohol addiction related to compulsive and problem gambling, as set forth in section 1509.1 (relating to drug and alcohol treatment) .

Sec. 13B61.

SUBCHAPTER G MISCELLANEOUS PROVISIONS

Participation in interactive gaming by persons outside Commonwealth.

13B62. Institutional investors. 13B63. Internet cafes and prohibition. § 13B61 . Participation in interactive gaming by persons outside

Commonwealth . Notwithstanding any other provision of this chapter to the

contrary, an interactive gaming certificate holder may accept interactive gaming wagers from a person who is not physically present in this Commonwealth, if the board determines the following:

(1) Participation in interactive gaming and acceptance of wagers associated with interactive gaming from a person not physically present in this Commonwealth is not inconsistent with Federal law or regulation or the law or regulation of the jurisdiction, including any foreign jurisdiction, in which the person is located.

(2) Participation in interactive gaming is conducted pursuant to an interactive gaming reciprocal agreement between the Commonwealth and another state or jurisdiction, including a foreign jurisdiction, to which the Commonwealth is a party and the interactive gaming reciprocal agreement is not inconsistent with Federal law or regulation.

§ 13B62. Institutional investors. (a) Declaration of investment intent.--Notwithstanding any

other provision of this part, the following shall apply: (1) An institutional investor holding 20% or less of the

equity securities of an interactive gaming certificate holder's, interactive gaming operator's or applicant's holding or intermediary companies shall be granted a waiver of any investigation of suitability or other requirement if the securities are those of a corporation, whether publicly

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1 traded or privately held, and the holdings of the securities 2 were purchased for investment purposes only. The 3 institutional investor shall file a certified statement that 4 it has no intention of influencing or affecting the affairs 5 of the interactive gaming certificate holder, interactive 6 gaming operator, applicant or its holding or intermediary 7 companies. However. an institutional investor shall be 8 permitted to vote on matters put to the vote of the 9 outstanding security holders.

10 (2) The board may grant a waiver to an institutional 11 investor holding a higher percentage of securities upon a 12 showing of good cause and if the conditions specified in 13 paragraph (1) are met. 14 (3) An institutional investor granted a waiver under 15 this subsection who subsequently decides to influence or 16 affect the affairs of the interactive gaming certificate 17 holder, interactive gaming operator or applicant's holding or 18 intermediary company shall provide not less than 30 days• 19 notice of intent and shall file with the board a request for 20 determination of suitability before taking any action that 21 may influence or affect the affairs of the issuer. An 22 institutional investor shall be permitted to vote on matters 23 put to the vote of the outstanding security holders. 24 (4) If an institutional investor changes its investment 25 intent or if the board finds reasonable cause to believe that 26 the institutional investor may be found unsuitable, no action 27 other than divestiture shall be taken by the institutional 28 investor with respect to its security holdings until there 29 has been compliance with any requirements established by the 30 board, which may include the execution of a trust agreement. 31 (5) The interactive gaming certificate holder or 32 interactive gaming operator or applicant and its relevant 33 holding, intermediary or subsidiary company shall notify the 34 board immediately of any information about, or actions of, an 35 institutional investor holding its equity securities where 36 the information or action may impact the eligibility of the 37 institutional investor for a waiver under this subsection. 38 (b) Failure to declare.--If the board finds: 39 (1) that an institutional investor holding any security 40 of a holding or intermediary company of an interactive gaming 41 certificate holder or interactive gaming operator or 42 applicant or, where relevant, of another subsidiary company 43 of a holding or intermediary company of an interactive gaming 44 certificate holder or interactive gaming operator or 45 applicant which is related in any way to the financing of the 46 interactive gaming certificate holder or interactive gaming 47 operator or applicant, fails to comply with the provisions of 48 subsection (a) ; or 49 (2) by reason of the extent or nature of its holdings, 50 an institutional investor is in a position to exercise such a 51 substantial impact upon the controlling interests of an

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1 interactive gaming certificate holder or interactive gaming 2 operator or applicant that investigation and determination of 3 suitability of the institutional investor is necessary to 4 protect the public interest; 5 then the board may take any necessary action otherwise 6 authorized under this chapter to protect the public interest. 7 § 13B63. Internet cafes and prohibition. 8 (a} General rule.--No organization or commercial enterprise 9 shall operate a place of public accommodation, club, including a

10 club or association limited to dues-paying members or similar 11 restricted groups, or similar establishment in which computer 12 terminals or similar access devices are advertised or made 13 available to be used principally for the purpose of accessing 14 interactive games. No interactive gaming certificate holder or 15 interactive gaming operator shall offer or make available 16 computer terminals or similar access devices to be used 17 principally for the purpose of accessing interactive games 18 within a licensed facility. 19 (b} Construction.--Nothing in this section shall be 20 construed to: 21 (1) reauire the owner or operator of a hotel or motel or 22 other public place of general use in this Commonwealth to 23 prohibit or block guests from playing interactive games; or 24 (2) require an interactive gaming certificate holder or 25 an interactive gaming operator to prohibit registered players 26 within a licensed facility from playing interactive games. 27 CHAPTER 13C 28 CASINO SIMULCASTING 29 Subchapter 30 A. General Provisions 31 B. Casino Simulcasting Authorized 32 C. Application and Issuance of Permit and Establishment of 33 Simulcasting Facility 34 D. Conduct of Casino Simulcasting 35 E. Fees and Taxes 36 SUBCHAPTER A 37 GENERAL PROVISIONS 38 Sec. 39 13C01. Legislative intent and purpose. 40 13C02. Definitions. 41 § 13C01. Legislative intent and purpose. 42 The General Assembly finds as follows: 43 (1) The people of this Commonwealth have a vital 44 economic interest in the continued success of this 45 Commonwealth's gaming industry, including the race horse 46 industry. Due to this economic interest, enhancements to 47 current gaming activities must be authorized to ensure the 48 ongoing competitiveness, viability and stability of the 49 gaming industry in this Commonwealth. so (2) A primary intent of the Race Horse Development and 51 Gaming Act, as codified in this part, is to enhance live

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1 horse racinq. However, the leqalization of commercial gaming 2 in states on the geographic borders of this Commonwealth 3 makes it imperative to authorize new and innovative gaming 4 activities related to horse racing and commercial casino-s style gaming. which could be implemented by licensed gaming 6 entities, and which could help ensure the viability of both 7 horse racing and commercial gaming. 8 (3) The intent of this chapter is to give Category 2 9 licensed gaming entities the authority to conduct casino

10 simulcasting at Category 2 licensed facilities in order to 11 expand horse racing opportunities through simulcasting and, 12 thereby, enhancing the viability of this Commonwealth's race 13 horse and commercial gaming industry. 14 § 13C02. Definitions. 15 The following words and phrases when used in this chapter 16 shall have the meanings given to them in this section unless the 17 context clearly indicates otherwise: 18 "Licensed gaming entity." A oerson who has been aooroved for 19 and issued a Category 2 slot machine license in accordance with 20 sections 1304 (relating to Category 2 slot machine license) and 21 1325 (relating to license or permit issuance) and who holds a 22 casino simulcasting permit. 23 SUBCHAPTER B 24 CASINO SIMULCASTING AUTHORIZED 25 Sec. 26 13COS. 27 13C06.

Authorization to conduct simulcasting. Regulations.

28 13C07. Temporary regulations. 29 13C08. Simulcast agreements. 30 § 13COS. Authorization to conduct simulcasting. 31 (a) Authority to conduct.--Notwithstanding any other 32 provision of law or regulation, it shall be lawful for a 33 licensed gaming entity to conduct casino simulcasting or enter 34 into an agreement or agreements with any licensed corporation or 35 other person for the conduct of casino simulcasting in 36 accordance with the provisions of this chapter, the applicable 37 regulations of the board and the commissions promulgated under 38 this chapter. 39 (b) Administration and enforcement.--The board shall 40 administer and enforce the provisions of this chapter and, 41 except as provided in this chapter, shall adopt and promulgate 42 regulations to carry out and enforce the provisions of this 43 chapter. 44 § 13C06. Regulations. 45 (a) Adoption of regulations.--The board, in consultation 46 with the commissions. shall adopt and promulgate regulations to 47 govern the conduct of casino simulcasting by licensed qaming 48 entities in this Commonwealth. Such regulations shall establish 49 the following: SO (1) The method and form of the application which a 51 licensed gaminq entity must follow and complete before

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1 consideration of the licensed gaming entity's application to 2 conduct casino simulcasting. 3 (2) The permissible communications technology which must 4 be used to facilitate the conduct of casino simulcasting in 5 accordance with regulations of the board, the commissions and 6 applicable Federal law and regulations. 7 (3) The times during which casino simulcasting may be s conducted by licensed gaming entities. The times during which 9 a licensed gaming entity may conduct casino simulcasting

10 shall be the same as the times authorized for the conduct of 11 casino simulcasting by Category 1 slot machine licensees. 12 (4) The approval of the terms and conditions of any 13 agreement between a licensed gaming entity and a licensed 14 corporation or other person related to the management or 15 operation of casino simulcasting and the pari-mutuel system 16 of wagering, including the percentage of the money retained 17 by a licensed corporation for pari-mutuel pools which may be 18 distributed to the licensed gaming entity. 19 (5) The required contents of agreements entered into 20 between a licensed gaming entity, a licensed corporation or 21 other person for the management or operation of casino 22 simulcasting and the pari-mutuel system of wagering . 23 (6) A requirement that wagering on simulcast horse race 24 meetings shall only be conducted within an enclosed location 25 of an authorized licensed gaming entity's licensed facility 26 which has been approved by the board, in consultation with 27 the appropriate commission. 28 (7) The standards and rules to govern the conduct of 29 casino simulcasting and the system of pari-mutuel wagering 30 associated with race horse simulcasting. 31 (8) The reporting procedures and records which will be 32 required from a licensed gaming entity to ensure that all 33 money generated from casino simulcasting is accounted for and 34 winners ' names, when required under applicable Federal or 35 State law, are filed with the appropriate taxing authorities. 36 (9) Notwithstanding section 228 of the Race Horse 37 Industry Reform Act or any other provision of law or 38 regulation, the policies and procedures which will be 39 adopted, implemented and followed to ensure that individuals 40 under 21 years of age will be prohibited from participating 41 in casino simulcasting or entering simulcasting areas of 42 licensed facilities. 43 (10) Any other requirements, conditions or controls 44 which the board deems necessary and appropriate to administer 45 and enforce the provisions of this chapter and to facilitate 46 the implementation of this chapter . 47 (b) Uniform requlation.--In adopting regulations under this 48 chapter. the commissions shall cooperate and work with the board 49 to develop uniform regulations to govern the operation of casino SO simulcasting in this Commonwealth . Except as herein provided, 51 the provisions of this chapter and any regulations promulgated

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1 under this chapter shall be considered as establishing uniform 2 requirements and regulations for casino simulcasting at Category 3 2 licensed facilities in this Commonwealth. 4 (c) Adoption of existing regulations.--Notwithstanding 5 subsection (b) or any other law or regulation to the contrary, 6 the provisions of section 221 of the Race Horse Industry Reform 7 Act and all regulations and supplements thereto or revisions 8 thereof adopted by the commissions under the Race Horse Industry 9 Reform Act which relate to the retention of money in pari-mutuel

10 pools and the pari-mutuel system of wagering on, before or after 11 the effective date of this chapter are adopted as regulations 12 under this chapter and shall remain in effect unless 13 subsequently modified or superseded by regulations promulgated 14 by the board, in consultation with the appropriate commission. 15 § 13C07. Temporary regulations. 16 (a) Promulgation.--In order to facilitate the oromot 17 imolementation of this chapter, regulations promulgated by the 18 board shall be deemed temporary regulations which shall expire 19 not later than two years following the publication of the 20 temporary regulation. The board may promulgate temporary 21 regulations not subject to: 22 (1) Sections 201, 202, 203, 204 and 205 of the act of 23 July 31, 1968 (P.L.769, No.240), referred to as the 24 Commonwealth Documents Law. 25 (2) Sections 204(b) and 301(10) of the act of October 26 15. 1980 (P.L.950, No.164), known as the Commonwealth 27 Attorneys Act. 28 (3) The act of June 25, 1982 (P.L.633, No.181), known as 29 the Regulatory Review Act. 30 (b) Expiration.--The authority to adopt temporary 31 regulations under subsection (a) shall expire two years after 32 the effective date of this section. Regulations adopted by the 33 board and commissions after the two-year period shall be 34 promulgated as provided by law. 35 (c) Publication of temporary regulations.--The board and the 36 conunissions shall begin publishing temporary regulations 37 governing casino simulcasting in the Pennsylvania Bulletin no 38 later than February 1, 2016. 39 § 13COB. Simulcast agreements. 40 (a) Manner of agreement.--Any agreement entered into by a 41 licensed gaming entity with a licensed corporation or other 42 person to facilitate casino simulcasting shall be in writing and 43 shall be filed with and approved by the board in accordance with 44 regulations promulgated by the board and the conunissions. 45 {b) Wager provisions.--Notwithstanding section 221 or 222 of 46 the Race Horse Industry Reform Act, the following shall apply: 47 (1) If a licensed gaming entity offers casino 4 8 simulcasting at its Category 2 licensed facility through an 49 agreement with a licensed corporation, the agreement shall 5 0 specify the percentage of the money wagered each racing day 51 at the casino simulcasting facility and remaining in the

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1 wagering pools after the required distributions under section 2 222 of the Race Horse Industry Reform Act that will be paid 3 to the licensed gaming entity. The amount retained by a 4 licensed gaming entity or other person shall not exceed 25% 5 of the money retained by the licensed corporation under 6 section 221(a) (6) or (7) of the Race Horse Industry Reform 7 Act. 8 (2) If a licensed gaming entity chooses to offer casino 9 simulcasting through its own resources or through an

10 agreement with another person, as approved by the board, the 11 board and the commissions shall, through regulation, 12 establish the percentage of money wagered each racing day at 13 the casino simulcasting facility and remaining in the 14 wagering pools after the required distributions under section 15 222 of the Race Horse Industry Reform Act that will be paid 16 to the licensed gaming entity or other person, provided that 17 the percentage of money to be paid to a licensed gaming 18 entity or other person under this paragraph shall be, if 19 determined appropriate by the board, the same percentage of 20 money remaining in the wagering pools that is retained by a 21 licensed corporation in accordance with section 22l(a) (6) and 22 (7) of the Race Horse Industry Reform Act. 23 (c) Regulations.--The board and the commissions shall 24 establish regulations to administer the retention requirements 25 under this section. 26 SUBCHAPTER C 27 APPLICATION AND ISSUANCE OF PERMIT AND 28 ESTABLISHMENT OF SIMULCASTING FACILITY 29 Sec. 30 13Cll. Application for permit and requirements. 31 13C12. Casino simulcasting permit. 32 13C13. Casino simulcasting facilities. 33 13C14. License or registration of employees required. 34 13C15. Key employees and occupation permits. 35 § 13Cll . Application for permit and requirements. 36 (a) Applications.--A licensed gaming entity shall file an 37 application for a casino simulcasting permit with the board . The 38 application shall include the following: 39 (1) The name, business address and contact information 40 of the applicant. 41 (2) The name and location of the applicant's licensed 42 facility. 43 (3) The name and business address, job title and a 44 photograph of each principal and key employee of the 45 applicant who will be involved in the conduct of casino 46 simulcasting and who is not currently licensed by the board 47 or an appropriate commission, if known. 48 (4) The estimated number of full-time and part-time 49 employment positions that will be created at the licensed so facility if casino simulcasting is authorized and an updated 51 hiring plan under section lSlO(a) (relating to labor hiring

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1 preferences) which outlines the applicant's plan to promote 2 the representation of diverse groups and Commonwealth 3 residents in the employment positions. 4 (5) A brief description of the economic benefits 5 expected to be realized by the Commonwealth, the Department 6 of Agriculture and the race horse industry in this 7 Commonwealth if casino simulcasting is authorized at the a applicant's licensed facility. 9 (6) The details of any financing, if applicable,

10 obtained or that will be obtained to fund an expansion or 11 modification of the licensed facility to accommodate casino 12 simulcasting or construct a simulcasting facility or to 13 otherwise fund the cost of commencing casino simulcasting 14 operations. 15 (7) Information and documentation concerning financial 16 background and resources, as the board may require, to 17 establish by clear and convincing evidence the financial 18 stability, integrity and responsibility of the applicant. 19 (8} A copy of or a detailed description of the terms and 20 conditions of any agreement or agreements the licensed gaming 21 entitv has entered into or will enter into with a licensed 22 corporation or other person to facilitate the conduct of 23 casino simulcasting. 24 (9) A detailed description of any financial arrangements 25 between a licensed gaming entity and a licensed corporation 26 or other person related to the conduct of casino 27 simulcasting. 28 (10) Information and documentation, as the board mav 29 require, to establish by clear and convincing evidence that 30 the applicant has or will have the financial ability to pay 31 the authorization fee under section 13C41 (relating to casino 32 simulcasting authorization fee) . 33 (11) Detailed site and architectural plans of the 34 proposed simulcasting facility within the applicant's 35 licensed facility. 36 (12) Any other information as the board may require. 37 {b) Review and approval of application.--The board shall 38 review and aoorove an aoolication for a simulcasting permit if 39 the applicant establishes, by clear and convincing evidence, all 40 of the following: 41 (1) The applicant's slot machine license is in good 42 standing with the board. 43 (2) The conduct of casino simulcasting at the 44 applicant's licensed facility will have a positive economic 45 imoact on the Commonwealth and the race horse industry in 46 this Commonwealth through increased revenues, increased 47 purses and employment opportunities. 48 (3) The applicant possesses adequate funds or has 49 secured adequate financing to: so (i) Fund any necessary expansion or modification of 51 the applicant's licensed facility or to construct a

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1 simulcasting facility to accommodate the conduct of 2 casino simulcasting. 3 (ii) Pay the costs of establishing, maintaining and 4 operating the simulcasting facility. 5 (iii) Commence casino simulcasting operations. 6 (4) The applicant has entered into or will enter into an 7 agreement with a licensed corporation or other person to 8 manage or operate casino simulcasting operations, if 9 applicable.

10 (5) The applicant has the expertise to manage casino 11 simulcasting. 12 (6) The applicant has the financial stability, integrity 13 and responsibility to conduct casino simulcasting. 14 (7) The applicant has sufficient business ability and 15 experience to create and maintain a successful casino 16 simulcasting operation. 17 (8) The applicant's proposed internal and external 18 security controls and proposed surveillance measures within 19 the area of the licensed facility where the applicant seeks 20 to conduct casino simulcasting are adequate. 21 (c) Confidentiality.--Information submitted to the board 22 under subsection (a) (6), (7) and (8) may be considered 23 confidential by the board if the information would be 24 confidential under section 1206(f) (relating to board minutes 25 and records) . 26 § 13C12. Casino simulcasting permit. 27 (a) Issuance of permit.--Upon review and aooroval of an 28 application submitted to the board in accordance with section 29 13Cll (relating to application for permit and requirements) , the 30 board shall issue a casino simulcasting permit to the applicant. 31 The awarding of a casino simulcasting permit prior to the 32 payment in full of the authorization fee required by section 33 13C41 (relating to casino simulcasting authorization fee) shall 34 not relieve the applicant from complying with the provisions of 35 section 13C41. 36 (b) Content of permit.--37 (1) A casino simulcastina permit shall include a list of 38 the horse race meetings which are proposed to be simulcast by 39 the casino simulcasting permit holder at its simulcasting 40 facility, including the names and locations of the in-State 41 sending racetracks and out-of-State sending racetracks, and 42 the start date and expiration date of any agreement or 43 agreements the permit holder has entered into or will enter 44 into with a licensed corporation or other person for the 45 operation of casino simulcasting. 46 (2) A casino simulcasting permit holder shall be 47 required to update the initial casino simulcasting 48 application at times prescribed by the board, in consultation 49 with the appropriate commission. 50 § 13C13. Casino simulcasting facilities. 51 (a) Establishment of simulcasting facility.--A licensed

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1 gaming entity approved for and issued a permit to operate casino 2 simulcasting under this chapter shall establish a simulcasting 3 facility as part of its licensed facility. The simulcasting 4 facility may be adjacent to, but shall not be part of, any room 5 or location in which slot machines or table games are operated 6 or conducted in accordance with the provisions of this part. The 7 following shall apply: a (1) The simulcasting facility shall conform to all 9 requirements concerning square footage, equipment, security

10 measures and related matters which the board shall by 11 regulation prescribe. 12 (2) The space or area required for the establishment of 13 a simulcasting facility shall not be used to decrease the 14 number of slot machines or table games in operation at the 15 licensed facility or to reduce the space approved by the 16 board for the operation of slot machines and the conduct of 17 table games. 18 (3) The cost of establishing, maintaining and operating 19 a simulcasting facility shall be the sole responsibility of 20 the licensed gaming entity. 21 (b) Video display monitors.--Notwithstanding any provisions 22 of the Race Horse Industry Reform Act or regulations promulgated 23 pursuant to that act, the regulations promulgated by the board 24 shall provide for the installation of video display technology 25 in approved areas of Category 1 and Category 2 licensed 26 facilities to deliver simulcast horse race meetings to patrons 27 via video walls and other such innovative video display 28 technology. 29 § 13C14. License or registration of employees required. 30 Except as provided in this part, all persons engaged directly 31 in wagering-related activities at a simulcasting facility, 32 whether employed by the licensed gaming entity, licensed 33 corporation or by a person or entity conducting casino 34 simulcasting in the simulcasting facility under an agreement 35 with the licensed gaming entity and all other employees of the 36 licensed gaming entity, licensed corporation or of the person or 37 entity conducting casino simulcasting who work or will work in 38 the simulcasting facility, shall be licensed or registered in 39 accordance with regulations promulgated by the board in 40 collaboration with the commissions. 41 § 13C15. Key employees and occupation permits. 42 Nothing in this subchapter shall be construed to require anv 43 individual who holds a principal license, a key employee license 44 or gaming employee license under Chapters 13 (relating to 45 licensees) and 13A (relating to table games) or who holds a 46 licen se under section 213 of the Race Horse Industry Reform Act 47 to obtain a separate license, permit or registration to be 48 employed in a permit holder's casino simulcasting operation 49 authori zed under this chapter, if the board determines that so licensure under the provisions of this part or the Race Horse 51 Indust ry Reform Act is sufficient and will not compromise the

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1 integrity of casino simulcasting. 2 SUBCHAPTER D 3 CONDUCT OF CASINO SIMULCASTING 4 Sec. 5 13C31. Conduct of casino simulcasting. 6 13C32. Transmission of live races. 7 13C33. Accounting controls and audit protocols . 8 13C34. Condition of continued operation. 9 13C35 . Application of Liquor Code .

10 § 13C31. Conduct of casino simulcasting. 11 (a) Wagerinq.--Wagering on simulcast horse races shall be 12 conducted only in the simulcasting facility, which shall be open 13 and operated whenever simulcast horse races are being 14 transmitted to the casino during permitted hours of operation in 15 accordance with regulations. 16 (b) Required security . --17 (1) The security measures for a simulcasting facility 18 shall include, but may not be limited to, the installation by 19 the licensed gaming entity of a closed-circuit television 20 system according to specifications promulgated jointly by the 21 board and the commissions. 22 (2) The board and the commissions shall have access to 23 the simulcast system or its signal in accordance with 24 regulations promulgated jointly by the board and the 25 commissions. 26 § 13C32. Transmission of live races. 27 The following shall apply: 28 (1) A licensed corporation which operates interstate or 29 international simulcasting of horse race meetings in this 30 Commonwealth shall have discretion to transmit all or some of 31 the live races conducted at the racetrack to a licensed 32 gaming entity which has established simulcasting facilities 33 under this chapter. Any race which is transmitted from an in-34 State sending track shall be transmitted to all licensed 35 gaming entities which have established simulcasting 36 facilities. 37 (2) A licensed gaming entity which establishes a 38 simulcasting facility and conducts casino simulcasting in 39 accordance with this chapter shall, as a condition of 40 continued operation of casino simulcasting, receive all live 41 races which are transmitted by in-State sending tracks. 42 § 13C33 . Accounting controls and audit protocols. 43 (a) Approval . --Prior to the commencement of casino 44 simulcasting, a casino simulcasting permit holder shall submit 45 to the board for approval all proposed site and architectural 46 plans, internal control systems and audit protocols for the 47 permit holder's casino simulcasting operations . 48 (b) Minimum reguirements.--A casino simulcasting permit 49 holder's internal controls and audit protocols shall: SO (1) Provide for reliable records, accounts and reports 51 of any financial event that occurs in the conduct of casino

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1 simulcastinq, includinq reoorts to the board and commissions 2 related to casino simulcasting, as may be required by 3 regulation of the board or commissions. 4 (2) Provide for accurate and reliable financial records 5 related to the conduct of casino simulcasting and the pari-6 mutuel system of wagering. 7 (3) Establish procedures and security for the counting. 8 recording and storage of money generated from the conduct of 9 casino simulcasting.

10 (4) Establish procedures and security standards for the 11 maintenance of telecommunications equipment and video display 12 technology used in connection with the conduct of casino 13 simulcasting. 14 (5) Establish procedures and rules to qovern the conduct 15 of casino simulcasting and the responsibility of employees 16 related to casino simulcasting. 17 (6) Establish procedures for the collection, recording 18 and deposit of revenue from the conduct of casino 19 simulcasting, including the roles of the commissions, the 20 department, licensed corporations and licensed gaming 21 entities in the collection and recording of the revenue. 22 (7) Ensure that the system of pari-mutuel wagering used 23 in the conduct of casino simulcasting is in accordance with 24 the Race Horse Industry Reform Act and regulations of the 25 commissions promulgated under the Race Horse Industry Reform 26 Act. 27 (8) Ensure, in consultation with the appropriate 28 commission, the proper and timely accounting for and 29 retention of percentages for pari-mutuel pools and the orooer 30 and timely distribution of money in any pari-mutuel pool 31 generated from casino simulcasting. 32 (9) Ensure that all functions, duties and 33 responsibilities related to casino simulcasting are 34 appropriately segregated and performed in accordance with 35 sound financial practices by qualified employees. 36 (10) Permit use of its casino simulcasting facility by 37 the board, the bureau, the commissions and other persons 38 authorized under this part or by the board to facilitate 39 their ability to perform regul atory and oversight functions 40 under this chapter. 41 (c) Submission to board.--The submission required under 42 subsection (a) shall include a detailed description of the 43 casino simulcasting permit holder's administrative and 44 accounting procedures related to casino simulcastinq, including 45 its written system of internal controls. Each written system of 46 internal controls shall include: 47 (1) An organizational chart depicting appropriate 48 functions and responsibilities of employees involved in 49 casino simulcasting. SO (2) A description of the duties and responsibilities of 51 each position shown on the organizational chart.

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1 (3) The record retention policy of the permit holder. 2 (4) The procedure to be utilized to ensure that money 3 generated from the conduct of casino simulcasting are 4 safeguarded, including mandatory counting and recording 5 procedures. 6 (5) A statement signed by the casino simulcasting permit 7 holder's chief financial officer or other competent person 8 attesting that the signatory believes, in good faith, that 9 the system satisfies the requirements of this section.

10 (d) Review.--Prior to authorizing a permit holder to conduct 11 casino simulcasting, the board, in consultation with the 12 commissions, shall review the system of internal controls 13 submitted under subsection (c) to determine whether it conforms 14 to the requirements of this subchapter and whether it provides 15 adequate and effective controls for the conduct of casino 16 simulcasting. 17 (e) License or registration of employees required.--Except 18 as provided in section 13C15 (relating to key employees and 19 occupation permits) , persons engaged directly in wagering-20 related activities at a simulcasting facility, whether employed 21 by the licensed gaming entity, a licensed corporation or by a 22 oerson or entity conducting casino simulcasting under an 23 agreement with the licensed gaming entity and all other 24 employees of the licensed gaming entity or of the person or 25 entity conducting casino simulcasting who work or will work in 26 the simulcasting facility shall be licensed or registered in 27 accordance with regulations promulgated by the board in 28 collaboration with the commissions. 29 § 13C34. Condition of continued operation. 30 As a condition of continued operation, a casino simulcasting 31 permit holder shall agree to maintain all books, records and 32 documents pertaining to casino simulcasting in a manner and 33 location within this Commonwealth as approved by the board, in 34 consultation with the appropriate commission. All books, records 35 and documents related to casino simulcasting shall: 36 (1) Be organized in a manner to clearly depict by 37 separate record the total amount of money contributed to 38 every pari-mutuel pool in accordance with the Race Horse 39 Industry Reform Act and any regulation promulgated under the 40 Race Horse Industry Reform Act. 41 (2) Be segregated by separate accounts within the 42 licensed gaming entity's books, records and documents, except 43 for any books, records or documents that are common to slot 44 machine operations, table game operations and casino 45 simulcasting, as determined by the board in consultation with 46 the appropriate commission. 47 (3) Be immediately available for inspection upon request 48 of the board, the appropriate commission, the bureau, the 49 department, the Pennsylvania State Police or the Attorney 50 General, or agents thereof, during all hours of operation of 51 the permit holder's simulcasting facility in accordance with

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1 regulations promulgated by the board in consultation with the 2 commissions. 3 (4) Be maintained for a period as the board. in 4 consultation with the commissions, by regulation, may 5 require. 6 § 13C35. Application of Liauor Code. 7 The provisions of section 493(24) (ii) of the act of April 12. 8 1951 (P.L.90, No.21). known as the Liquor Code, shall also apply 9 to casino simulcasting.

10 SUBCHAPTER E 11 FEES AND TAXES 12 Sec. 13 13C41. 14 13C42.

Casino simulcasting authorization fee. Retention and distribution of money and pari-mutuel

15 pools. 16 13C43. Casino simulcasting taxes. 17 § 13C41. Casino simulcasting authorization fee. 18 A casino simulcasting permit shall not be subject to the 19 payment of an authorization fee, renewal or the payment of an 20 additional permit fee. 21 § 13C42. Retention and distribution of money and pari-mutuel 22 pools. 23 (a) Wagers included in pari-mutuel pools.--24 (1) Sums wagered at a simulcasting facility on the 25 results of a simulcast horse race shall be included in the 26 appropriate pari-mutuel pool generated for the race being 27 transmitted in accordance with section 221 of the Race Horse 28 Industrv Reform Act and shall be distributed in accordance 29 with section 221 of the Race Horse Industry Reform Act or any 30 regulations promulgated under section 221 of the Race Horse 31 Industry Reform Act. All remaining money shall be paid to the 32 General Fund. 33 (2) Pavments to persons holding winning tickets at a 34 licensed facility shall be made according to the same odds as 35 those generated at the in-State sending track. 36 (3) A person placing a wager on a simulcast horse race 37 at a simulcasting facility shall not be charged a fee for 38 placing the wager in addition to the amount wagered. 39 (b) Computation of money wagered.--All money wagered by 40 players on horse race meetings at a simulcasting facility shall 41 be computed in the amount of money wagered each racing day for 42 purposes of taxation under section 222 of the Race Horse 43 Industry Reform Act, all thoroughbred races shall be considered 44 a part of a thoroughbred horse race meeting and all harness 45 races shall be considered a part of a harness horse race meeting 46 for purposes of section 222 of the Race Horse Industry Reform 47 Act. 48 § 13C43. Casino simulcasting taxes. 49 (a) Imposition.- -50 (1) All licensed gaming entities that conduct casino 51 simulcasting shall pay a tax through the department for

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1 credit to the General Fund. 2 (2) The tax imposed on all licensed gaming entities 3 shall be a percentage tax in the amount of 2% of the amount 4 wagered each racing day on casino simulcasting and shall be 5 paid from the money retained by the licensed gaming entity . 6 The tax imposed under this paragraph shall be paid to the 7 department on a form and in the manner prescribed by the 8 department for deposit into the General Fund. 9 (3) The casino simulcasting tax imposed under this

10 section shall be paid to the department by the permit holder 11 for deposit in the General Fund. 12 (b) Deposits and distributions.--13 (1) The tax imposed under subsection (a) shall be 14 payable to the department on a weekly basis and shall be 15 based upon the amounts retained by a licensed gaming entity 16 from the amount wagered on casino simulcasting each racing 17 day during the previous week. 18 (2) All money owed to the Commonwealth under this 19 section shall be held in trust for the Commonwealth by the 20 permit holder until the funds are paid to the department. 21 Unless otherwise agreed to by the board, a permit holder 22 shall establish a separate bank account into which casino 23 simulcasting revenue shall be deposited and maintained until 24 such time as the funds are paid to the department under this 25 26 27 28 29

section. (3) The tax imposed under subsection

deposited into the General Fund. CHAPTER 130

SLOT MACHINES AT 30 NONPRIMARY LOCATIONS 31 Subchapter 32 A. General Provisions

(a) shall be

33 B . Category 1 Licensed Gaming Entities and Nonprimary 34 Locations 35 C. Application and Issuance of Nonprimary Location Permit 36 D. Fees and Taxes 37 38

SUBCHAPTER A GENERAL PROVISIONS

39 Sec. 4 O 13001. (Reserved) . 41 13002. Authority to place slot machines at nonprimary 42 locations. 43 13003. Temporary regulations. 44 § 13001. (Reserved). 45 § 13002. Authority to place slot machines at nonprimary 46 locations. 47 (a) Placement of slot machines at nonprimary locations.--48 Notwithstanding any provision of this part, the Race Horse 49 Industry Reform Act or any other law or regulation to the so contrary, a Category 1 licensed gaming entity that is a licensed 51 corporation under the Race Horse Industry Reform Act shall apply

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1 to the board for a nonprimary location permit to place and make 2 slot machines available for play at nonprimary locations. 3 {b) Duty of the board and commissions.--The board shall have 4 general and regulatory authority over the placement and s operation of slot machines at nonprimary locations and shall, in 6 consultation with the commissions, promulgate regulations to 7 govern the placement and operation of slot machines at 8 nonprimary locations. Except that, any regulations specific to 9 the operation of nonprimary locations by licensed corporations

10 promulgated under 58 Pa. Code Ch. 171 {relating to nonprimary 11 locations) shall be adopted as regulations under this chapter, 12 unless the board and the commissions determine that such 13 regulations are not sufficient for the administration and 14 enforcement of this chapter. In that event, the board shall, in 15 consultation with the commissions, promulgate such regulations 16 specific to the operation of slot machines at nonprimary 17 locations as the board and commissions deem necessary to 18 facilitate the administration and enforcement of this chapter. 19 § 13003. Temporary regulations. 20 (a) Promulgation.--In order to facilitate the prompt 21 implementation of this chapter, regulations promulgated by the 22 board or the commissions shall be deemed temporary regulations 23 which shall expire not later than two years after the 24 publication of the temporary regulation in the Pennsylvania 25 Bulletin. The board may promulgate temporary regulations not 26 subject to: 27 (1) Sections 201, 202, 203, 204 and 205 of the act of 28 July 31, 1968 (P.L.769, No.240), referred to as the 29 Commonwealth Documents Law. 30 (2) Sections 204(b) and 301(10) of the act of October 31 15, 1980 (P.L.950, No.164), known as the Commonwealth 32 Attorneys Act. 33 (3) The act of June 25, 1982 (P.L.633, No.181), known as 34 the Regulatory Review Act. 35 (b) Expiration.--The authority of the board and the 36 commissions to adopt temporary regulations under subsection (a) 37 shall expire two years after the effective date of this section. 38 Regulations adopted after this period shall be promulgated as 39 provided by law. 40 (c) Temporary regulations.--The board and the commissions 41 shall begin publishing temporary regulations governing placement 42 and operation of slot machines at nonprimary locations in the 43 Pennsylvania Bulletin no later than February 1, 2016. 44 SUBCHAPTER B 45 Category 1 licensed gaming entities 46 AND nonprimary locations 47 Sec. 48 13D07. Authority to place slot machines at nonprimary 49 locations. SO § 13D07. Authority to place slot machines at nonprimary 51 locations.

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1 (a) Category 1 licensed gaming entity and operation of slot 2 machines at nonprimary locations.--The following shall apply: 3 (1) Each Category 1 licensed gaming entity under section 4 13D02 (relating to authority to place slot machines at 5 nonprimary locations) that is authorized to hold horse race 6 meetings at a racetrack at which more than one license is 7 authorized under the Race Horse Industry Reform Act may be 8 granted approval to place and make slot machines available 9 for play at four nonprimary locations, if the board, in

10 consultation with the appropriate commission, determines that 11 a nonprimary location newly proposed or approved in 12 accordance with regulations of the appropriate commission 13 will benefit economic development, employment, tourism, the 14 race horse industry and result in enhanced revenues to the 15 Commonwealth and the municipality where the newly proposed or 16 approved nonprimary location will be or is situated . 17 (2) Each Category 1 licensed gaming entity under section 18 13002 that is authorized to hold horse race meetings at a 19 racetrack at which only one license is authorized under the 20 Race Horse Industry Reform Act may be granted approval to 21 place and make slot machines available for play at four 22 nonprimary locations, if the board, in consultation with the 23 appropriate commission, determines that a nonprimary location 24 newly proposed or approved in accordance with regulations of 25 the appropriate commission will benefit economic development, 26 employment, tourism, the race horse industry and result in 27 enhanced revenues to the Commonwealth and the municipality 28 where the newly proposed or approved nonprimary location will 29 be or is situated. 30 (3) Notwithstanding paragraphs (1) and (2) or the Race 31 Horse Industry Reform Act, a racetrack location at which more 32 than one licensed corporation is authorized may be authorized 33 to place and make slot machines available for play at no more 34 than four nonprimary locations, and a racetrack location at 35 which only one licensed corporation is authorized shall be 36 authorized to place and make slot machines available for play 37 at no more than four nonprimary locations. 38 (4} A Category 1 licensed gaming entity, which is also a 39 licensed corporation as set forth in section 13D02(a), shall 40 not be authorized to place and make slot machines available 41 for play at any nonprimary location which is within the 42 primary market area of another licensed corporation, 43 regardless of whether the licensed corporation is authorized 44 to conduct horse race meetings or harness horse race 45 meetings, or both, at the racetrack location of its licensed 46 corporation. 47 (5) No Category 1 licensed gaming entity, which is also 48 a licensed corporation as set forth in section 13D02(a), 49 shall be authorized to place and make slot machines available SO for play at a nonprimary location which is located within 35 51 linear miles of another licensed facility or another

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1 nonprimary location . 2 (6) A nonprimary location may be located at a distance 3 that is less than the distances provided under paragraph (5) 4 if the licensed corporation owns the nonprimary location or 5 the licensed gaming entity enters into an agreement with 6 another licensed gaming entity and the agreement is filed 7 with the commission and the board. 8 (7) A Category 1 licensed gaming entity that places and 9 makes slot machines available for play at a nonprimary

10 location shall be subject to the requirements of section 11 1303(a), (b) and (d) (relating to additional Category 1 slot 12 machine license requirements) . 13 (b) Existing and newly established nonprimary locations.--14 Notwithstanding any provision of the Race Horse Industrv Reform 15 Act or any other law or regulation to the contrary, the 16 following shall apply: 17 (1) A licensed corporation that operated nonprimary 18 locations prior to the effective date of this subsection 19 shall not be prohibited from reopening a previously closed 20 nonprimary location or relocating an existing nonprimary 21 location in order to place and make slot machines available 22 for play in a reopened or relocated nonprimary location: 23 Provided, that, the previously closed or a relocated 24 nonprimary location complies with the location requirements 25 set forth in subsection (a) (4), (5) and (6).

26 (2) A licensed corporation may establish a new 27 nonprimary location in accordance with the Race Horse 28 Industry Reform Act in order to place and make slot machines 29 available for play and operate race horse simulcasting: 30 Provided, that, the new nonprimary location complies with the 31 location requirements set forth in subsection (a) (4) , (5) and 32 ~ 33 (c) Permissible number of slot machines.--34 (1) Notwithstanding section 1210 (relating to number of 35 slot machines) , a Category 1 licensed gaming entity, upon 36 approval of the board and remittance of the fee under section 37 13017 (relating to nonprimary location permit fee), may place 38 and make available for play no more than 250 slot machines at 39 a nonprimary location. 40 (2) The permissible number of slot machines that may be 41 placed and made available for play at a nonprimary location 42 under this subsection shall not be included in the complement 43 of slot machines authorized for a Category 1 licensed 44 facility under section 1210. 45 (3) In determining the permissible number of slot 46 machines that may be placed at a nonprimary location in 47 accordance with this subsection, the board shall consider the 48 appropriateness of the physical space of the nonprimary 49 location where the slot machines will be placed and the SO convenience of the public patronizing the nonprimary 51 location. The board may also consider the potential benefit

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1 to economic development, employment, tourism, the race horse 2 industry and enhanced revenues to the Commonwealth and the 3 municipality where the nonprimary location is situated. 4 SUBCHAPTER C 5 Application and issuance of 6 nonprimary location permit 7 Sec. 8 13011. Application for nonprimary location permit . 9 13012. Issuance and terms of nonprimary location permit.

10 13013. Confidentiality. 11 13014 . Key employees and occupation permits. 12 § 13011. Application for nonprimary location permit. 13 (a) Application.--An application for a nonprimary location 14 permit to place and make slot machines available for play at a 15 nonprimary location shall be submitted on a form and in a manner 16 as shall be required by the board. In reviewing and approving 17 each application, the board shall: 18 (1) Ensure that the proposed location of the nonprimary 19 location complies with the location requirements set forth in 20 section l3D07(a) {4), (5} and (6) (relating to authority to 21 place slot machines at nonprimary locations). 22 (2) Confirm that the nonprimary location permit fee 23 under section 13017 {relating to nonprimary location permit 24 fee) has been paid or will be paid in accordance section 25 13017. 26 (b) Required information.--An application for a nonprimary 27 location permit shall include, at a minimum: 28 (1) The name of the Category 1 slot machine licensee and 29 the licensed corporation and location of the existing 30 nonprimary location, if any, or the location of any proposed 31 relocated or new nonprimary location. 32 (2) The name, address and current photograph of the 33 applicant and of all directors and owners and key employees 34 and their positions within the licensed corporation, if 35 required by the board. 36 (3) The proposed location of the slot machine area or 37 areas in the nonprimary location, if known. 38 {4) Detailed site and architectural plans of the 39 proposed area or areas within the nonprimary location where 40 slot machines will be placed and made available for play. 41 {5} The number of slot machines requested. 42 (6) The current status of the horse racing or harness 43 horse racing license issued pursuant to the Race Horse 44 Industry Reform Act, if required by the board. 45 -(7) The current status of the slot machine license 46 issued under this part. if required by the board . 47 (8) The details of any loans or other financing obtained 48 or that will be obtained to fund an expansion, modification 49 or construction project at an existing nonprimary location, a SO relocated nonprimary location or a proposed or newly approved 51 nonprimary location to accommodate slot machines at the

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1 nonorimarv location. 2 (9) The consent to conduct a background investigation by 3 the bureau, the scope of which shall be determined by the 4 bureau at its discretion consistent with the provisions of 5 this part. and a release signed by all persons subject to the 6 investigation of all information required to complete the 7 investiqation, if the bureau, at its discretion, determines 8 that a background investigation is necessary under this 9 chapter.

10 (10) Any other information determined to be necessary 11 and appropriate by the board. 12 § 13D12. Issuance and terms of nonprimary location permit. 13 (a) Issuance of permit.--Upon approval of an application for 14 a nonprimary location permit and payment of the nonprimary 15 location permit fee under section 13D17 (relating to nonprimary 16 location permit fee) , the board shall issue a nonprimary 17 location permit to a Category 1 licensed gaming entity 18 authorizing it to place and make slot machines available for 19 play at a nonprimary location. 20 (b) Terms of permit.--A nonprimary location permit approved 21 and issued by the board in accordance with subsection (a) shall 22 be in effect unless suspended or revoked by the board upon good 23 cause consistent with the requirements of this part, regulations 24 promulgated pursuant to this part or regulations of the 25 appropriate commission. 26 (c) Notification of change in status.--Nothing in this 27 section shall relieve a nonprimary location permit holder of the 28 affirmative duty to notify the board of any changes relating to 29 the status of its nonprimary location permit, its license issued 30 under the Race Horse Industry Reform Act or to any other 31 information contained in the application materials on file with 32 the board. 33 § 13D13. Confidentiality. 34 Information submitted to the board under section 13011 35 (relating to application for nonprimary location permit) may be 36 considered confidential by the board if the information would be 37 confidential under section 1206(f) (relating to board minutes 38 and records) . 39 § 13014. Key employees and occupation permits. 40 Nothing in this subchapter shall be construed to reauire anv 41 individual who holds a principal license, a key employee license 42 or gaming employee license under Chapters 13 (relating to 43 licensees) and 13A (relating to table games) or who holds a 44 license under section 213 of the Race Horse Industry Reform Act 45 to obtain a separate license, permit or registration to be 46 employed in a permit holder's slot machine operation at a 47 nonprimary location under this chapter, if the board determines, 48 in consultation with the commissions, that licensure under the 49 provisions of this part or the Race Horse Industry Reform Act is SO sufficient and will not compromise the integrity of the 51 operation of slot machines at nonprimary locations.

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l 2 3 Sec.

SUBCHAPTER 0 FEES AND TAXES

4 13017. 5 13018. 6

Nonprimary location permit fee. Nonprimary location taxes, imposition, deposits and

distributions. 7 § 13017. Nonprimary location permit fee. 8 (a) Amount of fee.--At the time a nonprimary location oermit 9 is issued under section 13D12(a) (relating to issuance and terms

10 of nonprimary location permit) , the board shall impose a one-11 time fee of $5,000,000 to be paid by the Category 1 licensed 12 gaming entity for each nonprimary location where it will place 13 and make slot machines available for play. 14 (b) Renewal fee not reguired.--A nonprimary location permit 15 shall not be subject to renewal or payment of any nonprimary 16 location permit renewal fee. 17 (c) Deposit of fee into General Fund.--Notwithstanding 18 section 1208 (relating to collection of fees and fines) , all 19 nonprimary location permit fees and penalties collected by the 20 board under this subsection shall be deposited in the General 21 Fund. 22 § 13018. Nonprimary location taxes, imposition, deposits and 23 distributions. 24 (a) Imposition.--The department shall determine and each 25 nonprimary location permit holder shall pay a daily tax of 54% 26 from its daily gross terminal revenue from the slot machines in 27 operation at its nonprimary location. 28 (b) Distribution.--29 (1) The tax imposed and collected under subsection (a) 30 shall be distributed as follows: 31 (i) Ninety-two percent of the tax shall be deposited 32 by the department in the General Fund. 33 (ii) Eight percent shall constitute a local share 34 assessment and be distributed by the department on a 35 quarterly basis as follows: 36 (A) Four percent to the county in which the 37 nonprimary location is located. 38 (B) Four percent to the municipality in which 39 the nonprimary location is located. 40 (2) All money owed to the Commonwealth, a county or a 41 municipality under this section shall be held in trust by the 42 licensed corporation or licensed gaming entity for the 43 Commonwealth, county or municipality until all funds are 44 distributed by the department in accordance with this 45 subsection. 46 (c) Payments and deposits.--47 (1) The tax imposed under subsection (a) shall be 48 payable to the department on a weekly basis and shall be 49 based upon gross slot machine revenue derived from the 50 operation of slot machines at a nonprimary location during 51 the previous week.

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1 (2} All money owed to the Commonwealth and collected by 2 the department in accordance with this subchapter shall be 3 deposited in the General Fund. 4 CHAPTER 13 E S SLOT MACHINES IN QUALIFIED AIRPORTS 6 Subchapter 7 A. Preliminary Provisions a B. Airport Gaming Authorized 9 c. Conduct of Airport Gaming

10 D. Airport Gaming Fees and Taxes 11 E. Miscellaneous Provisions 12 SUBCHAPTER A 13 PRELIMINARY PROVISIONS 14 Sec. 15 13E01. Definitions. 16 § 13E01. Definitions. 17 The following words and phrases when used in this chapter 18 shall have the meanings given to them in this section unless the 19 context clearly indicates otherwise: 20 "Airport authority." The governing body of a municipal 21 authority organized and incorporated in accordance with 53 22 Pa.C.S. Ch. 56 (relating to municipal authorities) to oversee 23 the operations of a qualified airport. The term shall include 24 the governing body of any joint municipal authority which 25 operates a qualified airport and the governing body of a city of 26 the first class which owns and operates a qualified airport 27 located in a county of the first class. 28 "Airport gaming." The licensed placement, operation and play 29 of slot machines in a qualified airport as authorized and 30 approved by the board. 31 "Airport gaming certificate holder." The authorization 32 issued under this chapter to conduct airport gaming. 33 "Airport gaming operation certificate." A certificate issued 34 by the Pennsylvania Gaming Control Board under Chapter 13B 35 (relating to interactive gaming} that authorizes a slot machine 36 licensee to conduct airport gaming in accordance with this 37 chapter. 38 "Airport gaming revenue." The dailv gross terminal revenue 39 derived from the conduct of airport gaming. 40 "Qualified airoort." A publicly owned commercial service 41 airport that is designated by the Federal Government as an 42 international airport. 43 "Specified area." The secure area of a qualified airoort 44 where slot machines are placed and made available to play and 45 members of the public, other than passengers, are prohibited 46 from entering. 47 SUBCHAPTER B 48 AIRPORT GAMING AUTHORIZED 49 Sec. 50 13Ell. 51 13E12.

Authorization. Application.

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1 13E13. Standard for review of applications. 2 13E14. Approval of application. 3 13El5. Airport gaming operation certificate. 4 13El6. Timing of initial airport gaming authorizations. 5 § 13Ell. Authorization. 6 (a) General rule.--Upon application of a slot machine 7 licensee, the board may authorize the slot machine licensee to a conduct airport gaming. A slot machine licensee seeking 9 authorization to conduct airport gaming must enter into an

10 agreement with the governing body of a qualified airport and 11 submit the agreement to the board for approval. No person shall 12 cause or make slot machines available for play at a qualified 13 airport without first obtaining an airport gaming certificate in 14 accordance with the provisions of this chapter. 15 (b) Conditions.--Authorization shall be contingent upon the 16 slot machine licensee's agreement to ensure that slot machine 17 operations will be conducted in accordance with this part and 18 any other conditions established by the board. The agreement 19 shall specify the fees to be paid to the qualified airport by 20 the slot machine licensee for the privilege of conducting 21 airport gaming. Nothing in this part shall be construed to 22 create a separate license governing the conduct of airport 23 gaming by slot machine licensees within this Commonwealth. 24 (c) Number of slot machines.--The board shall approve the 25 maximum number of slot machines that a slot machine licensee may 26 operate at a qualified airport. The board, in making its 27 determination, shall consider the physical space where the slot 28 machines will be located and the convenience of passengers. The 29 board may also consider the potential employment, enhanced 30 revenues to the Commonwealth and other economic indicators it 31 deems applicable in making its decision. 32 § 13E12. Application. 33 (a) Information to be provided.--An aoolicant seeking 34 authorization to conduct airport gaming shall provide the 35 following information to the board: 36 (1) The name, business address and contact information 37 of the applicant. 38 (2) The name and business address, job title and a 39 photograph of each principal and key employee of the 40 applicant who will be involved in the conduct of airport 41 gaming and who is not currently licensed by the board, if 42 known. 43 (3) The number of slot machines for which authorization 44 is being sought. 45 (4) The estimated number of full-time and oart-time 46 employment positions that will be created at the qualified 47 airport if the slot machine licensee is authorized to operate 48 slot machines under this chapter and an updated hiring plan 49 under section 1510(a) (relating to labor hiring preferences} SO which outlines the applicant's plan to promote the employment 51 representation of diverse groups and Commonwealth residents.

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1 (5) The details of any financing obtained or that will 2 be obtained to fund an expansion or modification of the 3 qualified airport to accommodate the conduct of airport 4 gaming and to otherwise fund the cost of commencing airport 5 gaming operations. 6 (6) Information and documentation concerning financial 7 background and resources, as the board may require, to 8 establish by clear and convincing evidence the financial 9 stability, integrity and responsibility of the applicant.

10 (7) Information and documentation, as the board may 11 require, to establish by clear and convincing evidence that 12 the applicant has sufficient business ability and experience 13 to conduct airport gaming. In making this determination, the 14 board may consider the results of the applicant's slot 15 machine operation, including financial information, 16 employment data and capital investment. 17 (8) Information and documentation, as the board may 18 require, to establish by clear and convincing evidence that 19 the applicant has or will have the financial ability to pay 20 the required fee under section 13E51 (relating to fees) . 21 (9) Detailed site plans identifying the applicant's 22 proposed specified area. 23 (10) A copy of the agreement entered into by the slot 24 machine licensee and the qualified airport. 25 (11) Other information as the board may require. 26 (b) Confidentiality.--Information submitted to the board 27 under subsection (a) (6), (7), (9), (10) and (11) may be 28 considered confidential bv the board if the information would be 29 confidential under section 1206(f) (relating to board minutes 30 and records) . 31 § 13E13. Standard for review of applications. 32 The board shall approve an application if the aoolicant 33 establishes, by clear and convincing evidence, all of the 34 following: 35 (1) The applicant's slot machine license is in good 36 standing with the board. 37 (2) The applicant possesses adequate funds or has 38 secured adequate financing to: 39 (i) Fund any necessary expansion or modification of 40 the qualified airport to accommodate the conduct of 41 airport gaming if required in the agreement with the 42 governing body of the airport authority. 43 (ii) Pay the required fee in accordance with section 44 13E51 (relating to fees) . 45 (iii) Commence airport gaming operations at the 46 qualified airport . 47 (3) The applicant has the financial stability, integrity 48 and responsibility to conduct airport gaming. 49 (4) The applicant has sufficient business ability and SO experience to create and maintain airport gaming. 51 (5) The applicant's proposed internal and external

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l security and proposed surveillance measures within the 2 specified area where the applicant seeks to conduct airport 3 gaming are adequate. 4 (6) The applicant agrees that the number of slot 5 machines in operation at its licensed facility will not be 6 permanently reduced in order to conduct airport gaming. 7 § 13E14. Approval of application. 8 Upon approval of an application, the board shall issue an 9 airport gaming operation certificate to the applicant. Issuing

10 an airoort qaming ooeration certificate prior to the payment in 11 full of the fee required by section 13E51 (relating to fees) 12 shall not relieve the applicant from complying with the 13 provisions of section 13E51. 14 § 13E15. Airport qaminq operation certificate. 15 The following shall apply: 16 (1) An airport gaming operation certificate shall be in 17 effect unless: 18 (i) Suspended or revoked by the board consistent 19 with the requirements of this part. 20 {ii) The slot machine license held by the airport 21 gaming certificate holder is suspended, revoked or not 22 renewed by the board consistent with the requirements of 23 this part. 24 (iii) The airport gaming certificate holder 25 relinquishes or does not seek renewal of its slot machine 26 license. 27 (iv) The agreement between the airport gaming 28 certificate holder and the governing body of the 29 authority is not renewed. 30 (2) The airport gaming operation certificate shall 31 include the maximum number of slot machines approved by the 32 board and permitted in the specified area. The airport gaming 33 certificate holder may increase or decrease the number of 34 slot machines permitted in the specified area or change the 35 configuration of the slot machines upon notice to and 36 approval by the board. Unless approved by the board, the 37 total number of slot machines in operation in the specified 38 area may not exceed the number authorized in the airport 39 gaming operation certificate. 40 (3) A airport gaming certificate holder shall be 41 required to update the information in its initial airport 42 gaming application at times prescribed by the board. 43 § 13E16. Timing of initial airport gaming authorizations. 44 The board shall approve or deny an application within 180 45 days following receipt of the completed application. 46 SUBCHAPTER C 47 CONDUCT OF AIRPORT GAMING 48 Sec. 49 13E31. Authorized locations for operation. SO 13E32. Commencement of airport gaming operations. 51 13E33. Condition of continued operation.

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1 2 3 4 5 6 7 8 9

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 so 51

13E34. Airport gaming accounting controls and audit protocols. 13E35. Cash equivalents. 13E36. Occupation permits. § 13E31. Authorized locations for operation.

(a) Restriction.--An airport gaming certificate holder shall only be permitted to operate slot machines in the specified area authorized by the board.

(b) Powers and duties of board.--No airport gaming certificate holder may be approved to operate slot machines unless the specified area is equipped with adequate security and surveillance equipment to ensure the integrity of the conduct of airport gaming. An authorization granted under this section may not impose any criteria or requirements regarding the contents or structure of a gualif ied airport which are unrelated to the conduct of airport gaming. § 13E32. Commencement of airport gaming operations.

An airport gaming certificate holder may not operate or of fer slot machines for play at a gualif ied airport until the board determines that:

(1) The airport gaming certificate holder is in compliance with the requirements of this part.

(2) The airport gaming certificate holder's internal controls and audit protocols are sufficient to meet the requirements of section 13E34 (relating to airport gaming accounting controls and audit protocols) .

(3) The airport gaming certificate holder's gaming employees, where applicable, are licensed, permitted or otherwise authorized by the board to perform their respective duties.

(4) The airport gaming certificate holder is prepared in all respects to of fer slot machine play to eligible passengers at the qualified airport.

(5) The airport gaming certificate holder has implemented necessary internal and management controls and security arrangements and surveillance systems for the conduct of airport gaming.

(6) The airport gaming certificate holder is in compliance with or has complied with section 13E51 (relating to fees) .

(7) All slot machines certified and approved for use under this chapter are compatible and comply with the central control computer and protocol specifications approved by the department.

(8) The airport gaming certificate holder has implemented or will implement the necessary procedures and safeguards to ensure that no individual under 21 vears of age will be permitted to enter the specified area of the qualified airport.

§ 13E33. Condition of continued operation. As a condition of continued operation, an airport gaming

certificate holder shall maintain all books, records and

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l documents pertaining to airport aaminq in a manner and location 2 within this Commonwealth as approved by the board. All books, 3 records and documents related to airport gaming shall: 4 (1) be segregated by separate accounts within the slot 5 machine licensee's books, records and documents, except for 6 any books, records or documents that are common to the 7 licensee's slot machine operations at a licensed facility and 8 a qualified airport; 9 (2) be immediately available for insoection uoon reauest

10 of the board, the bureau, the department, the Pennsylvania 11 State Police or the Attorney General, or agents thereof, 12 during all hours of operation at the qualified airport in 13 accordance with regulations promulgated by the board; and 14 (3) be maintained for a period as the board, by 15 regulation, may require. 16 § 13E34. Airport gaming accounting controls and audit 17 protocols. 18 (a) Approval.--Prior to the commencement of airport gaming 19 operations, an airport qaming certificate holder shall submit to 20 the board for approval all proposed site plans, internal control 21 systems and audit protocols for the airport gaming certificate 22 holder's airport gaming operations. 23 (b) Minimum reguirements . --The airport gaming certificate 24 holder's internal controls and audit protocols shall meet the 25 requirements set forth in section 1322(b) and (c) (relating to 26 slot machine accounting controls and audits) . 27 § 13E35. Cash equivalents. 28 Notwithstanding any other provisions of this part, the board 29 may, through regulations, determine the cash equivalents that 30 may be authorized and accepted by an airport gaming certificate 31 holder in the conduct of airport gaming. 32 § 13E36. Occupation permits . 33 (a) Application.--Any person who desires to be a gaming 34 employee and has a bona fide offer of employment from a airport 35 gaming certificate holder authorized to operate slot machines 36 under this chapter shall apply to the board for an occupation 37 permit. A person may not be employed as a gaming employee unless 38 and until that person holds an appropriate occupation permit 39 issued under this section. The board may promulgate regulations 40 to reclassify a category of nongaming employees or aaminq 41 employees upon a finding that the reclassification is in the 42 public interest and consistent with the objectives of this part. 43 (b) Reguirements.--The application for an occupation permit 44 shall include, at a minimum: 45 (1) The name and home address of the person. 46 (2) The previous employment history of the person. 47 (3) The criminal history record of the person, as well 48 as the person's consent for the Pennsylvania State Police to 49 conduct a background investigation. SO (4) A photograph of the person. 51 (5) Evidence of the offer of employment and the nature

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1 and scope of the proposed duties of the person, if known. 2 (6) The details of any occupation permit or similar 3 license granted or denied to the applicant in other 4 jurisdictions and consent for the board to obtain copies of 5 applications submitted or permits or licenses issued in 6 connection therewith. 7 (7) Any other information determined by the board to be 8 appropriate. 9 (c) Prohibition.--No airport gaming certificate holder may

10 employ or permit any individual under 18 years of age to render 11 any service in any specified area where slot machines are 12 physically located. 13 (d) Construction.--Nothinq in this part shall be construed 14 to require any individual who holds a principal license, a key 15 employee license or gaming employee license under Chapter 13 16 (relating to licensees) to obtain a separate license, permit, 17 certificate, registration or other authorization to be employed 18 in an airport gaming certificate holder's airport gaming 19 operations. 20 SUBCHAPTER D 21 AIRPORT GAMING FEES AND TAXES 22 Sec. 23 13E51. Fees. 24 13E52. Airport gaming tax and assessment. 25 § 13E51. Fees. 26 (a) Required fees.--A slot machine licensee shall pay: 27 (1) Except as set forth in paragraph (2) or (3), a one-28 time. nonrefundable fee of $1,000,000 upon the issuance of a 29 certificate to operate slot machines under this chapter in a 30 qualified airport. 31 (2) A one-time, nonrefundable fee of $5,000,000 upon the 32 issuance of a certificate to operate slot machines under this 33 chapter in a qualified airport located in a city of the first 34 class. 35 (3) A one-time, nonrefundable fee of $2,500,000 upon the 36 issuance of a certificate to operate slot machines under this 37 chapter in a qualified airport located in a county of the 38 second class. 39 (b) Deposit of fees.--Notwithstanding section 1208 (relating 40 to collection of fees and fines), all fees or penalties received 41 by the board under this chapter shall be deposited in the 42 General Fund. 43 § 13E52. Airport gaming tax and assessment . 44 (a) Imposition.--Each airport gaming certificate holder 45 shall report to the department and pay from its airport gaming 46 revenue, on a form and in the manner prescribed by the 47 department, a tax of 34% of its airport gaming revenue and an 48 airport local share assessment. 49 (b) Deposits and distributions.--50 (1) The tax and local share assessment imposed under 51 subsection (a) shall be payable to the department on a weekly

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1 basis and shall be based upon gross terminal revenue derived 2 during the previous week. 3 (2) All funds owed to the Commonwealth under this 4 section shall be held in trust for the Commonwealth by the S airoort gaminq certificate holder until the funds are paid to 6 the department. Unless otherwise agreed to by the board, a 7 airport gaming certificate holder shall establish a separate 8 bank account into which gross terminal revenue shall be 9 deposited and maintained until such time as the funds are

10 paid to the department under this section. 11 (3) The department shall transfer the tax revenues 12 collected under this section to the General Fund. 13 (4) The department shall quarterly distribute to each 14 qualified airport the airport local share assessment from the 15 airport gaming revenue generated from airport gaming at each 16 qualified airport. 17 (c) Definitions.--As used in this section, the following 18 words and phrases shall have the meanings given to them in this 19 subsection unless the context clearly indicates otherwise: 20 "Airport local share assessment." Twenty percent of an 21 airport gaming certificate holder's airport gaming revenue. 22 SUBCHAPTER E 23 MISCELLANEOUS PROVISIONS 24 Sec. 25 13E91. Regulations. 26 § 13E91. Regulations. 27 (a) Requlations.--The board shall promulgate regulations 28 consistent with the provisions of this part related to the 29 operation of slot machines to govern the conduct of airport 30 gaming at qualified airports. 31 (b) Temporary regulations.--In order to facilitate the 32 prompt implementation of this chapter, regulations promulgated 33 by the board in accordance with subsection (a) shall be deemed 34 temporary regulations which shall expire not later than two 35 vears following the publication of the temporary regulation. The 36 board may promulgate temporary regulations not subject to: 37 (1) Sections 201, 202, 203, 204 and 205 of the act of 38 July 31, 1968 (P.L.769, No.240), referred to as the 39 Commonwealth Documents Law. 40 (2) The act of June 25, 1982 (P.L.633, No.181), known as 41 the Regulatory Review Act. 42 (3) Sections 204(b) and 301(10) of the act of October 43 15, 1980 (P.L.950, No.164), known as the Commonwealth 44 Attorneys Act. 45 (c) Expiration.--The board's authority to adopt temporary 46 regulations under subsection (a) shall expire two years after 47 the effective date of this section. Regulations adopted after 48 this period shall be promulgated as provided by law. 49 Section 12. Sections 1403 {b), {c) (2) {ii) {D), {iii) {A) and 50 {iv) {B), 1405, 1407, lSOl{b) and 1509{c) of Title 4 are amended 51 to read:

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1 § 1403. 2

Establishment of State Gaming Fund and net slot machine revenue distribution.

3 * * * 4 (b) Slot machine tax.--The department shall determine and 5 each slot machine licensee shall pay a daily tax of 34% from its 6 daily gross terminal revenue from the slot machines in operation 7 at its licensed facility and a local share assessment as 8 provided in subsection (c) . All funds owed to the Commonwealth, 9 a county or a municipality under this section shall be held in

10 trust by the licensed gaming entity for the Commonwealth, the 11 county and the municipality until the funds are paid or 12 transferred to the fund. Unless otherwise agreed to by the 13 board, a licensed gaming entity shall establish a separate bank 14 account to maintain gross terminal revenue until such time as 15 the funds are paid or transferred under this section. Moneys in 16 the fund are hereby appropriated to the department on a 17 continuing basis for the purposes set forth in subsection (c). 18 For the purpose of this subsection, the term licensed facility 19 shall not be construed to include a nonprimary location at which 20 a Category 1 slot machine licensee is authorized to place and 21 make slot machines available for play in accordance with Chapter 22 13D (relating to slot machines at nonprimary locations) or the 23 physical land-based location of a gualif ied airport under 24 Chapter 13E (relating to slot machines in qualified airports) . 25 (c) Transfers and distributions.--The department shall: 26 * * * 27 (2) From the local share assessment established in 28 subsection (b), make quarterly distributions among the 29 counties hosting a licensed facility in accordance with the 30 following schedule: 31 * * * 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

(ii) If the licensed facility is a Category 1 licensed facility and is located at a thoroughbred racetrack and the county in which the licensed facility is located is:

* * * (D) A county of the third class: 1% of the

gross terminal revenue to the county hosting the licensed facility from each such licensed facility. An additional 1% of the gross terminal revenue to the county hosting the licensed facility from each such licensed facility for the purpose of municipal grants within the county in which the licensee is located. Notwithstanding the provisions of the act of February 9, 1999 (P.L.l, No.l), known as the Capital Facilities Debt Enabling Act. grants made under this clause may be utilized as local matching funds for other grants or loans from the Commonwealth.

* * * (iii) If the facility is a Category 2 licensed

facility and if the county in which the licensed facility

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1 is located is: 2 (A) A county of the first class: 4% of the 3 gross terminal revenue to the county hosting the 4 licensed facility from each such licensed facility. 5 Notwithstanding any other provision to the contrary, 6 funds from licensed gaming entities located within a 7 county of the first class shall not be distributed 8 outside of a county of the first class. [The first 9 $5,000,000] Fifty percent or $5,000,000, whichever is

10 greater, of the total amount distributed annually to 11 the county of the first class shall be distributed to 12 the Philadelphia School District. 13 * * * 14 (iv) * * * 15 (B) If the facility is a Category 3 licensed 16 facility located in a county of the second class A, 17 2% of the gross terminal revenue [from the licensed 18 facility shall be deposited into a restricted 19 receipts account to be established in the 20 Commonwealth Financing Authority to be used 21 exclusively for grants or guarantees for projects in 22 the host county that qualify under 64 Pa.c.s. §§ 1551 23 (relating to Business in Our Sites Program), 1556 24 (relating to Tax Increment Financing Guarantee 25 Program) and 1558 (relating to Water Supply and 26 Wastewater Infrastructure Program).] to the county 27 hosting the licensed facility from each such licensed 28 facility shall be deposited as follows: 29 (I) Seventy-five percent shall be deposited 30 for the purpose of supporting the maintenance and 31 refurbishment of the parks and heritage sites 32 throughout the county in which the licensed 33 facility is located. 34 (II) Twelve and one-half percent shall be 35 deposited for the purpose of supporting a child 36 advocacy center located within the county in 37 which the licensed facility is located. 38 (III) Twelve and one-half percent shall be 39 deposited for the purpose of supporting an 40 organization providing comprehensive support 41 services to victims of domestic violence, 42 including legal and medical aid, shelters, 43 transitional housing and counseling located 44 within the county in which the licensed facility 45 is located. 46 * * * 47 § 1405. Pennsylvania Race Horse Development Fund. 48 (b) Pennsylvania race horse improvement assessment.--Each 49 active and operating licensed gaming entity shall pay a daily 50 assessment to the Pennsylvania Race Horse Development Fund as 51 determined by the department. Subject to the daily assessment

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1 cap established under subsection (c) , the licensed gaming 2 entity's assessment shall be a percentage of each licensed 3 gaming entity's gross terminal revenue from the slot machines in 4 operation at its licensed facility, equal to an amount 5 calculated as "A" multiplied by "B", with "A" being equal to 6 each licensed gaming entity's gross terminal revenue for that 7 day divided by the total gross terminal revenue for that day 8 from all licensed gaming entities, and "B" being equal to 18% of 9 that day's gross terminal revenue for all active and operating

10 Category 1 licensees conducting live racing. 11 (c) Daily assessment cap.--If the resulting daily assessment 12 for a licensed gaming entity exceeds 12% of that licensed gaming 13 entity's gross terminal revenue from the slot machines in 14 operation at its licensed facility for the day, the licensed 15 gaming entity shall pay a daily assessment of 12% of its gross 16 terminal revenue for that day . 17 (e) Definition.--For the purposes of this section, the term 18 "licensed facility" shall not include the physical land-based 19 location at which a licensed gaming entity is authorized to 20 place and operate slot machines in a nonprimary location under 21 Chapter 13D (relating to slot machines at nonprimary locations) 22 or in a gualif ied airport under Chapter 13E (relating to slot 23 machines in gualif ied airports) . 24 § 1407. Pennsylvania Gaming Economic Development and Tourism 25 Fund. 26 (a) Fund established.--There is hereby established a 27 Pennsylvania Gaming Economic Development and Tourism Fund within 28 the State Treasury. 29 (b) Fund administration and distribution.--The Pennsylvania 30 Gaming Economic Development and Tourism Fund shall be 31 administered by the Department of Community and Economic 32 Development. All moneys in the Pennsylvania Gaming Economic 33 Development and Tourism Fund shall be distributed pursuant to a 34 subsequently enacted Economic Development Capital Budget that 35 appropriates money from the fund pursuant to this section. The 36 procedures for enactment, authorization and release of economic 37 development and tourism funds authorized under this section for 38 both capital projects and operational expenditures shall be the 39 same as those provided for in sections 303(a), (b) and (c) and 40 318(a) of the act of February 9, 1999 (P.L.1, No.1), known as 41 the Capital Facilities Debt Enabling Act, without reference to 42 the nature or purpose of the project, and any other statutory 43 provision, if any, necessary to effectuate the release of funds 44 appropriated in such economic development capital budget. 45 (c) Pennsylvania Gaming Economic Development and Tourism 46 FUnd Assessment . --Each licensed gaming entity shall pay a daily 47 assessment of 5% of its gross terminal revenue from the slot 48 machines in operation at its licensed facility to the 49 Pennsylvania Gaming Economic Development and Tourism Fund. 50 (d) Restrictions on projects for certain counties and 51 cities.--Except as set forth in subsection (d.1), for a ten-year

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1 period beginning with the first fiscal year during which 2 deposits are made into this fund, no moneys from the 3 Pennsylvania Gaming Economic Development and Tourism Fund shall 4 be distributed for any project located in a city or county of S the first or second class except as authorized by this 6 subsection. Moneys not used for the authorized projects in 7 cities and counties of the first and second classes may be used 8 throughout this Conunonwealth. Moneys from the fund for projects 9 within cities and counties of the first and second classes may

10 only be used for the following projects during this ten-year 11 period: 12 (1) for reimbursement to a city of the first class for 13 debt service made by such city to the extent that such 14 payments have been made for the expansion of the Pennsylvania 15 Convention Center; 16 (2) for distribution to the General Fund to the extent 17 that the Conunonwealth has made debt service payments for the 18 expansion of the Pennsylvania Convention Center; 19 (3) for reimbursement to a city of the first class for 20 payments made by such city for the operation expenses of the 21 Pennsylvania Convention Center during the prior calendar 22 year; 23 (4) for debt service and for development and economic 24 development projects for an international airport located in 25 a county of the second class; 26 (5) for distribution to a conununity infrastructure 27 development fund of a county of the second class to fund 28 construction, development, improvement and maintenance of 29 infrastructure projects; 30 (6) for the retirement of the indebtedness of an urban 31 redevelopment authority created pursuant to the act of May 32 24, 1945 (P.L.991, No.385), known as the Urban Redevelopment 33 Law, in a city of the second class which is financed in part 34 with the utilization of funds transferred to the regional 35 asset district pursuant to Article XXXI-B of the act of July 36 28, 1953 (P.L.723, No.230), known as the Second Class County 37 Code; 38 (8) for retirement of indebtedness of a county of the 39 second class development fund created pursuant to the 40 authority of Article XXXI-B of the Second Class County Code 41 and the Urban Redevelopment Law; 42 (9) for retirement of indebtedness of a convention 43 center in a city of the second class established pursuant to 44 the authority of the Public Auditorium Authorities Law; 45 (10) for payment of the operating deficit for the 46 operation of a convention center in a city of the second 47 class established pursuant to the Public Auditorium 48 Authorities Law. 49 (d.l) Conununity and economic development.--50 (1) Notwithstanding subsection (b) or any other 51 provision of law to the contrary, the money authorized but

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1 not expended under former subsection (d) (7) as of the 2 effective date of this subsection shall be deposited into a 3 restricted receipts account to be established in the 4 Commonwealth Financing Authority exclusively for eligible s applications submitted by the redevelopment authority of a 6 county of the second class created pursuant to the act of May 7 24, 1945 (P.L.991, No.385), known as the Urban Redevelopment a Law, for economic development, infrastructure development, 9 job training, community improvement, public safety or other

10 projects in the public interest located in a county of the 11 second class. Community development corporations, political 12 subdivisions, urban redevelopment authorities, municipal 13 authorities, for-profit entities and nonprofit entities 14 located in a county of the second class shall be eligible to 15 receive funds made available under this paragraph. 16 (2) Notwithstanding the Capital Facilities Debt Enabling 17 Act, funding under the paragraph (1) may be utilized as local 18 matching funds for grants or loans from the Commonwealth. 19 (e) Annual report.--The Office of the Budget, in cooperation 20 with the Department of Community and Economic Development and 21 the Commonwealth Financing Authority, shall submit an annual 22 report of all distribution of funds under this section to the 23 chairman and minority chairman of the Appropriations Committee 24 of the Senate, the chairman and minority chairman of the 25 Community, Economic and Recreational Development Committee of 26 the Senate, the chairman and minority chairman of the 27 Appropriations Committee of the House of Representatives and the 28 chairman and minority chairman of the Gaming Oversight Committee 29 of the House of Representatives. The report shall include 30 detailed information relating to transfers made from the 31 Pennsylvania Gaming Economic Development and Tourism Fund and 32 all reimbursements , distributions and payments made under 33 subsection (b) or the act of July 25, 2007 (P.L.342, No.53), 34 known as Pennsylvania Gaming Economic Development and Tourism 35 Fund Capital Budget Itemization Act of 2007. The report shall be 36 submitted by August 31, 2010, and by August 31 of each year 37 thereafter. 38 (f) Local report.--A city of the first class, city of the 39 second class, county of the second class, convention center or 40 convention center authority, sports and exhibition authority of 41 a county of the second class, urban redevelopment authority, 42 airport authority or other entity that receives money from the 43 fund pursuant to an Economic Development Capital Budget under 44 subsection (b) or the Pennsylvania Gaming Economic Development 45 and Tourism Fund Capital Budget Itemization Act of 2007 shall 46 submit an annual report to the Office of the Budget. The report 47 shall include detailed information, including records of 48 expenditures, payments and other distributions made from funds 49 received under subsection (b) . The initial report shall include SO information on all funds received prior to August 31, 2010. The 51 report shal l be submitted by August 31, 2010, and by August 31

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1 of each year thereafter until all funds under this section are 2 distributed or received. An entity that receives funds for the 3 first time after the effective date of this section shall submit 4 its initial report by August 31 of the year following receipt of 5 the funds. 6 (g) Definition . --For the purposes of this section, the term 7 "licensed facility" shall not include the physical land-based 8 location at which a licensed gaming entity is authorized to 9 place and operate slot machines in a nonprimary location under

10 Chapter 13D (relating to slot machines at nonprimary locations) 11 or in a gualif ied airport under Chapter 13E (relating to slot 12 machines in qualified airports) . 13 § 1501. Responsibility and authority of department. 14 * * * 15 (b) Application of rules and regulations.--The department 16 may prescribe the extent, if any, to which any rules and 17 regulations shall be applied without retroactive effect. The 18 department shall have authority to prescribe the forms and the 19 system of accounting and recordkeeping to be employed and 20 through its representative shall at all times have power of 21 access to and examination and audit of any equipment and records 22 relating to all aspects of the operation of slot machines [andl..1-23 including slot machines at nonprimary locations, table games-'-24 interactive gaming and casino simulcasting under this part. 25 * * * 26 § 1509. Compulsive and problem gambling program. 27 * * * 28 (c) Notice of availability of assistance.--29 (l) Each slot machine licensee shall obtain a toll-free 30 telephone number to be used to provide persons with 31 information on assistance for compulsive or problem gambling. 32 Each licensee shall conspicuously post at least 20 signs 33 similar to the following statement : 34 If you or someone you know has a gambling problem, help 35 is available. Call (Toll-free telephone number). 36 The signs must be posted within 50 feet of each entrance and 37 exit, within SO feet of each automated teller machine 38 location within the licensed facility and in other 39 appropriate public areas of the licensed facility, including 40 areas of a casino simulcasting facility, as determined by the 41 slot machine licensee. 42 (2) Each racetrack where slot machines or table games 43 are operated shall print a statement on daily racing programs 44 provided to the general public that is similar to the 45 following: 46 If you or someone you know has a gambling problem, help 47 is available. Call (Toll-free telephone number). 48 (2 . 1) Each interactive gaming certificate holder, 49 interactive gaming operator or other person that operates 50 interactive gaming or an interactive gaming system on behalf 51 of an interactive gaming certificate holder:

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1 (i) Shall cause the words: 2 If vou or someone vou know has a gambling problem, 3 help is available. Call (Toll-free telephone number). 4 or some comparable language approved by the board, which 5 language shall include the words "gambling problem" and 6 "call 1-800-XXXX, 11 to be prominently and continuously 7 displayed to any person visiting or logged onto the a interactive gaming certificate holder's interactive 9 gaming skin or Internet website.

10 (ii) Shall provide a mechanism by which an 11 interactive gaming account holder may establish the 12 following controls on wagering activity through the 13 interactive gaming account: 14 (A) A limit on the amount of money lost within a 15 specified period of time and the length of time the 16 account holder will be unable to participate in 17 gaming if the holder reaches the established loss 18 limit. 19 (B) A limit on the maximum amount of any single 20 wager on any interactive game. 21 (C) A temporary suspension of interactive gaming 22 through the account for any number of hours or days. 23 (iii} Shall not mail or otherwise forward any 24 gaming-related promotional material or e-mail to a 25 registered player during any period in which interactive 26 gaming through the registered players• interactive gaming 27 account has been suspended or terminated. The interactive 28 gaming certificate holder shall provide a mechanism by 29 which a registered player may change the controls, except 30 that, while interactive gaming through the interactive 31 gaming account is suspended, the registered player may 32 not change gaming controls until the suspension expires, 33 but the registered player shall continue to have access 34 to the account and shall be permitted to withdraw funds 35 from the account upon proper application for the funds to 36 the interactive gaming certificate holder. 37 (3) A [licensed facility] licensed gaming entity which 38 fails to post or print the warning sign in accordance with 39 paragraph (1) [or]L (2) or (2.1) (i) shall be assessed a fine 40 of $1,000 a day for each day the minimum number of signs are 41 not posted or the required statement is not printed as 42 provided in this subsection. 43 (4) An interactive gaming certificate holder or 44 interactive gaming license holder, as the case may be, that 45 fails to establish the mechanisms, controls and systems in 46 accordance with paragraph (2.1) (ii) and (iii) shall be 47 assessed a fine of not less than $5,000 per day for each day 48 the mechanisms, controls and systems are not available to 49 interactive gaming account holders. 50 * * * 51 Section 12.1. Title 4 is amended by adding a section to

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1 read : 2 § 1509 . 2. Child endangerment protection. 3 (a) Posting of signs.--The following shall apply: 4 (1} Each licensed gaming entity shall post the necessarv 5 signage to notify patrons of the prohibition against leaving 6 a child unattended in a vehicle under section 1518(a) (18} 7 (relating to prohibited acts and penalties) and underage 8 gambling under section 1518(a) (13) and (13.1) and the penalty 9 for violations.

10 (2) The signs shall be conspicuously posted in clear 11 view of all parking areas and other public areas of the 12 licensed facility and. including where applicable, nonprimary 13 locations, as determined by the licensed gaming entity and 14 approved by the board . 15 (3) The board shall determine the written content and 16 minimum number of signs to be posted at each licensed 17 facility. 18 (b) Fine.--A licensed gaming entity that fails to post 19 signaqe in accordance with subsection (a) shall be assessed a 20 fine of $1,000 per day for each day the minimum number of signs 21 as prescribed by the board are not posted. 22 Section 13. Section 1512 of Title 4 is amended by adding a 23 subsection to read: 24 § 1512. Financial and employment interests. 25 * * * 26 (a.6) Prohibition related to interactive gaming.--27 (1) Except as may be provided by rule or order of the 28 Pennsylvania Supreme Court and except as provided in section 29 1202.1 (relating to code of conduct) or 1512.1 (relating to 30 additional restrictions), no executive-level public employee, 31 public official or party officer or immediate family member 32 thereof shall hold, directly or indirectly, an interest in, 33 hold employment with, represent, appear for, or negotiate on 34 behalf of, or derive any remuneration, payment, benefit or 35 any other thing of value for any services, including, but not 36 limited to, consulting or similar services from any holder of 37 or applicant for an interactive gaming certificate, holder or 38 applicant for an interactive gaming license or other 39 authorization to conduct interactive gaming or any holding or 40 intermediary company with respect thereto, or any interactive 41 gaming affiliate of anv holder of or applicant for a slot 42 machine license, or any holding or intermediary company with 43 respect thereto, or any business, association, enterprise or 44 other entity that is organized in whole or in part for the 45 purpose of promoting, advocating for or advancing the 46 interests of the interactive gaming industry generally or any 47 interactive gaming-related business or businesses in 48 connection with any cause, application or matter . 49 (2) Notwithstanding paragraph (1), a member of the SO immediate family of an executive-level public employee, 51 public official or party officer may hold employment with the

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1 holder of or applicant for an interactive qaminq certificate, 2 holder or applicant for an interactive gaming license or 3 other authorization to conduct interactive gaming or any 4 holding or intermediary company with respect thereto or any 5 interactive gaming affiliate or interactive gaming operator 6 of any holder of or applicant for a slot machine license or 7 interactive gaming license or any holding or intermediary a company with respect thereto, if in the judgment of the State 9 Ethics Commission or the Supreme Court, as appropriate,

10 employment will not interfere with the responsibilities of 11 the executive-level public employee, public official or party 12 officer and will not create a conflict of interest or 13 reasonable risk of the public perception of a conflict of 14 interest on the part of the executive-level public employee, 15 public official or party officer. 16 (3) The financial interest and employment prohibitions 17 specified in paragraphs (1) and (2) shall apply to casino 18 simulcasting under Chapter 13C (relating to casino 19 simulcasting) and slot machines at nonprimary locations under 20 Chapter 13D (relating to slot machines at nonprimary 21 locations) . 22 * * * 23 Section 14. Sections 1514 heading, (a) , (d) , (e) and (f) , 24 1515, 1516 and 1517 (b) (1), (c) (12) and (e) (1) of Title 4 are 25 amended to read: 26 § 1514. Regulation requiring exclusion [or]L ejection or denial 27 of access of certain persons. 28 (a) General rule.--The board shall by regulation provide for 29 the establishment of a list of persons who are to be excluded or 30 ejected from any licensed facility or who may be denied access 31 to interactive gaming, casino simulcasting or slot machines at 32 nonprimary locations. The provisions shall define the standards 33 for exclusion and shall include standards relating to persons 34 who are career or professional offenders as defined by 35 regulations of the board or whose presence in a licensed 36 facility or whose access to interactive gaming, casino 37 simulcasting and slot machines at nonprimary locations would, in 38 the opinion of the board, be inimical to the interest of the 39 Conunonwealth or of licensed gaming therein, or both.

40 * * * 41 (d) Sanctions.--The board may impose sanctions upon a 42 licensed gaming entity or interactive gaming licensee in 43 accordance with this part if the licensed gaming entity 44 knowingly fails to exclude or eject from the premises of any 45 licensed facility or deny access to interactive gaming, casino 46 simulcasting or to slot machines at a nonprimary location any 47 person placed by the board on the list of persons to be excluded 48 [or]L eject ed or denied access. 49 {e } List not all-inclusive.--Any list compiled by the board SO of persons to be excluded (or]~ ejected or denied access shall 51 not be deemed an all-inclusive list, and a licensed gaming

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1 entity shall have a duty to keep from the licensed facility and 2 from interactive gaming, casino simulcasting and slot machines 3 at a nonprimary location persons known to it to be within the 4 classifications declared in this section and the regulations 5 promulgated under this section whose presence in a licensed 6 facility or whose participation in interactive gaming, casino 7 simulcasting and the play of slot machines at a nonprimary 8 location would be inimical to the interest of the Commonwealth 9 or of licensed gaming therein, or both, as defined in standards

10 established by the board . 11 (f) Notice.--Whenever the bureau seeks to place the name of 12 any person on a list pursuant to this section, the bureau shall 13 serve notice of this fact to such person by personal service or 14 certified mail at the last known address of the person. The 15 notice shall inform the person of the right to request a hearing 16 under subsection (g) . The bureau may also provide notice by e-17 mail, if the electronic mail address of the person is known to 18 the bureau. 19 * * * 20 § 1515. Repeat offenders excludable from licensed gaming 21 facility. 22 A licensed gaming entity may exclude or eject from its 23 licensed facility or deny access to interactive gaming, casino 24 simulcasting and slot machines at a nonprimary location any 25 person who is known to it to have been convicted of a 26 misdemeanor or felony committed in or on the premises of any 27 licensed facility. Nothing in this section or in any other law 28 of this Commonwealth shall limit the right of a licensed gaming 29 entity to exercise its common law right to exclude or eject 30 permanently from its licensed facility or permanently deny 31 access to its interactive gaming, casino simulcasting and slot 32 machines at a nonprimary location any person who disrupts the 33 operations of its premises or its interactive gaming or casino 34 simulcasting operations or the operation of slot machines at a 35 nonprimary location, threatens the security of its premises or 36 its occupants or is disorderly or intoxicated[ . ] or who 37 threatens the security of its licensed facility, including the 38 area of a nonprimary location where slot machines are placed and 39 made available for play, the area of a licensed facility where 40 interactive gaming operations are conducted or casino 41 simulcasting. 42 § 1516 . List of persons self excluded from gaming activities. 43 (a) General rule.--The board shall provide by regulation for 44 the establishment of a list of persons self excluded from gaming 45 activities, including interactive gaming, casino simulcasting 46 and the play of slot machines at nonprimary locations, at all 47 licensed facilities . Any person may request placement on the 48 list of self-excluded persons by acknowledging in a manner to be 49 established by the board that the person is a problem gambler SO and by agreeing that, during any period of voluntary exclusion, 51 the person may not collect any winnings or recover any losses

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1 resulting from any gaming activity at licensed facilities..r...,_ 2 including interactive gaming, casino simulcasting and the play 3 of slot machines at a nonprimary location. 4 (b) Regulations.--The regulations of the board shall 5 establish procedures for placements on and removals from the 6 list of self-excluded persons. The regulations shall establish 7 procedures for the transmittal to licensed gaming entities of a identifying information concerning self-excluded persons and 9 shall require licensed gaming entities to establish procedures

10 designed at a minimum to deny self-excluded persons access to 11 interactive gaming, casino simulcasting and the play of slot 12 machines at nonprimary locations and to remove self-excluded 13 persons from targeted mailings or other forms of advertising or 14 promotions and deny self-excluded persons access to 15 complimentaries, check cashing privileges, club programs and 16 other similar benefits. 17 (c) Liability.--A licensed gaming entity or employee thereof 18 shall not be liable to any self-excluded person or to any other 19 party in any judicial proceeding for any harm, monetary or 20 otherwise, which may arise as a result of: 21 (1) the failure of a licensed gaming entity to withhold 22 gaming privileges from or restore gaming privileges to a 23 self-excluded person; [or] 24 (1.1) the failure of a interactive gaming certificate 25 holder or interactive gaming licensee to withhold interactive 26 gaming privileges from or restore interactive gaming 27 privileges to a self- excluded person; 28 (1.2) the failure of a casino simulcasting permit holder 29 to withhold casino simulcasting privileges from or restore 30 such privileges to a self-excluded person; 31 (1.3) the failure of a Category 1 licensed gaming entity 32 to withhold or restore access to slot machines at a 33 nonprimary location to a self-excluded person; or 34 (2) otherwise permitting or not permitting a self-35 excluded person to engage in gaming activity in the facility 36 or participate in interactive gaming, casino simulcasting or 37 slot machine play at a nonprimary location while on the list 38 of self-excluded persons. 39 (d) Disclosure.--Notwithstanding any other law to the 40 contrary, the board's list of self-excluded persons shall not be 41 open to public inspection. Nothing in this section, however, 42 shall be construed to prohibit a licensed gaming entity from 43 disclosing the identity of persons self excluded pursuant to 44 this section to affiliated gaming entities in this Commonwealth 45 or other jurisdictions for the limited purpose of assisting in 46 the proper administration of responsible gaming programs 47 operated by affiliated licensed gaming entities. 48 § 1517. Investigations and enforcement. 49 * * * 50 (b) Powers and duties of department.--51 (1) The department shall at all times have the power of

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1 access to examine and audit equipment and records relating to 2 all aspects of the operation of slot machines [or]L table 3 games, interactive games and casino simulcasting under this 4 part. 5 * * * 6 (c) Powers and duties of the Pennsylvania State Police.--The 7 Pennsylvania State Police shall have the following powers and a duties: 9 * * *

10 (12) Conduct audits or verification of information of 11 slot machine [or]L table game operations, including the 12 operation of slot machines used in a multistate wide-area 13 progressive slot machine system and in the operation of skill 14 or hybrid slot machines, interactive gaming and casino 15 simulcasting operations and the operation of slot machines at 16 a nonprimary location at such times, under such circumstances 17 and to such extent as the bureau determines. This paragraph 18 includes reviews of accounting, administrative and financial 19 records and management control systems, procedures and 20 records utilized by a slot machine licensee. 21 * * * 22 (e) Inspection, seizure and warrants.--23 (1) The bureau, the department and the Pennsylvania 24 State Police shall have the authority without notice and 25 without warrant to do all of the following in the performance 26 of their duties: 27 (i) Inspect and examine all premises, including the 28 premises of a nonprimary location, where slot machine 29 [or]L table game, interactive gaming and casino 30 simulcasting operations are conducted, slot machines, 31 table game devices and associated equipment, interactive 32 gaming devices and associated equipment or casino 33 simulcasting technology or equipment are manufactured, 34 sold, distributed or serviced or where records of these 35 activities are prepared or maintained. 36 (ii) Inspect all equipment and supplies in, about, 37 upon or around premises referred to in subparagraph (i) . 38 (iii) Seize, summarily remove and impound equipment 39 and supplies from premises referred to in subparagraph 40 (i) for the purposes of examination and inspection. 41 (iv) Inspect, examine and audit all books, records 42 and documents pertaining to a slot machine licensee's 43 operation. 44 (v) Seize, impound or assume physical control of any 45 book, record, ledger, game, device, cash box and its 46 contents, count room or its equipment, interactive gaming 47 devices and associated equipment or casino simulcasting 48 technology or equipment or slot machine [or]L table game"'---49 interactive gaming or casino simulcasting operations. 50 * * * 51 Section 15. Section 1518(a)(l), (2), (3), (4), (5) , (7.1),

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1 ( 11 ) , ( 13 ) , ( 13 . 1 ) , ( 15 ) and ( 1 7 ) and ( b ) ( 1 } , ( 2 } and ( 3 } of 2 Title 4 are amended, subsections (a} and (b) are amended by 3 adding paragraphs and subsection (c} (l} is amended by adding a 4 subparagraph to read: 5 § 1518. Prohibited acts; penalties. 6 (a} Criminal offenses.--7 (1) The provisions of 18 Pa.c.s. § 4902 (relating to 8 perjury), 4903 (relating to false swearing) or 4904 (relating 9 to unsworn falsification to authorities) shall apply to any

10 person providing information or making any statement, whether 11 written or oral, to the board, the commissions, the bureau, 12 the department, the Pennsylvania State Police or the Office 13 of Attorney General, as required by this part. 14 (2) It shall be unlawful for a person to willfully: 15 (i) fail to report, pay or truthfully account for 16 and pay over any license fee, authorization fee, permit 17 fee, tax or assessment imposed under this part; or 18 (ii) attempt in any manner to evade or defeat any 19 license fee, authorization fee, permit fee, registration 20 fee, tax or assessment or any other fee imposed under 21 this part. 22 (3) It shall be unlawful for any licensed entity, gaming 23 employee, key employee or any other person to permit a slot 24 machine, table game or table game device, interactive game or 25 interactive gaming device or associated equipment or casino 26 simulcasting technology or equipment to be operated, 27 transported, repaired or opened on the premises of a licensed 28 facility by a person other than a person licensed or 29 permitted by the board pursuant to this part. 30 (3.1) It shall be unlawful for any person who does not 31 possess a valid and then effective interactive gaming 32 certificate or interactive gaming license issued by the board 33 in accordance with Chapter 13B (relating to interactive 34 gaming) to accept any wager associated with any authorized 35 interactive game from any individual without verifying the 36 age, identity and physical location of the player at the time 37 of play or wager. 38 (3.2) It shall be unlawful for any person who does not 39 possess a valid and then effective casino simulcasting permit 40 issued by the board in accordance with section 13Cl2 41 (relating to casino simulcasting permit) to operate or permit 42 an individual to participate in casino simulcasting at a 43 Category 2 licensed facility in this Commonwealth. 44 (3.3) It shall be unlawful for any person who does not 45 possess a valid nonprimary location permit issued by the 46 board in accordance with section 13Dl2 (relating to issuance 47 and terms of nonprimary location permit) to place and make 48 slot machines available for play at a nonprimary location. 49 (4) It shall be unlawful for any licensed entity or 50 other person to manufacture, supply or place slot machines, 51 table games, table game devices or associated equipment.L-

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1 authorized interactive game or interactive gaming devices or 2 associated equipment or casino simulcasting technology or 3 equipment into play or display slot machines, including slot 4 machines at a nonprimary location, table games, table game 5 devices or associated equipment on the premises of a licensed 6 facility without the authority of the board. 7 (4 . 1) It shall be unlawful for any slot machine licensee 8 to offer interactive games into play or display such qames on 9 its interactive gaming skin or Internet website without the

10 approval of the board. 11 (4.2) It shall be unlawful for any licensed entity or 12 other person to manufacture, supply or place interactive 13 gaming devices or associated equipment into operation at a 14 licensed facility without the approval of the board. 15 (4.3) It shall be unlawful for any Category 2 slot 16 machine licensee to conduct casino simulcasting without the 17 approval of the board, in consultation with the conunissions. 18 (4.4) It shall be unlawful for any Category 1 slot 19 machine licensee to place and make slot machines available 20 for play at a nonprimary location without the approval of the 21 board . 22 (5) Except as provided for in section 1326 (relating to 23 [license] renewals), it shall be unlawful for a licensed 24 entity or other person to manufacture, supply, operate, carry 25 on or expose for play any slot machine, including slot 26 machines at a nonprimary location, table game, table game 27 device or associated equipment, interactive game or 28 interactive gaming device or associated equipment or casino 29 simulcasting technology or equipment after the person's 30 license has expired and prior to the actual renewal of the 31 license. 32 * * * 33 (7.1) It shall be unlawful for an individual to do any 34 of the following: 35 (i) Use or possess counterfeit, marked, loaded or 36 tampered with table game devices or associated equipment, 37 chips or other cheating devices in the conduct of gaming 38 under this part, except that an authorized employee of a 39 licensee or an authorized employee of the board may 40 possess and use counterfeit chips or table game devices 41 or associated equipment that have been marked, loaded or 42 tampered with, or other cheating devices or any 43 unauthorized interactive gaming device or associated 44 equipment in performance of the duties of employment for 45 training, investigative or testing purposes only. 46 (ii) Knowingly, by a trick or sleight of hand 47 performance or by fraud or fraudulent scheme, or 48 manipulation, table game device or other device, 2!:.... 49 interactive gaming device for himself or for another, win 50 or attempt to win any cash, property or prize at a 51 licensed facility or to reduce or attempt to reduce a

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1 losing wager. 2 (7.2) It shall be unlawful for a person to knowingly 3 alter, tamper or manipulate interactive gaming devices or 4 associated equipment, including software, system programs, 5 hardware and any other device or associated equipment used in 6 interactive gaming operations, in order to alter the odds or 7 the payout of an interactive game or to disable the a interactive game from operating according to the rules of the 9 game as authorized by the board.

10 (7.3) It shall be unlawful for a person to knowingly 11 offer or allow to be offered any authorized interactive game 12 that has been altered, tampered with or manipulated in a way 13 that affects the odds or the payout of an interactive game or 14 disables the interactive game from operating according to the 15 rules of the game as authorized by the board. 16 * * * 17 (11} It shall be unlawful for a licensed gaming entity 18 that is a licensed racing entity and that has lost the 19 license issued to it by either the State Horse Racing 20 Commission or the State Harness Racing Commission under the 21 Race Horse Industry Reform Act or that has had that license 22 suspended to operate slot machines [or]~ table games ~ 23 authorized interactive games at the racetrack or nonprimary 24 location for which its slot machine license was issued unless 25 the license issued to it by either the State Horse Racing 26 Commission or the State Harness Racing Commission will be 27 subsequently reissued or reinstated within 30 days after the 28 loss or suspension.

* * * 29 30 (13} It shall be unlawful for an individual under 21 31 years of age to enter and remain in any area of a licensed 32 facility where slot machines are operated, including any area 33 of a nonprimary location, or the play of table games is 34 conducted or where casino simulcasting is conducted, except 35 that an individual 18 years of age or older employed by a 36 slot machine licensee, a gaming service provider, the board 37 or any other regulatory or emergency response agency may 38 enter and remain in any such area while engaged in the 39 performance of the individual's employment duties. 40 (13 . 1) It shall be unlawful for an individual under 21 41 years of age to wager, play or attempt to play a slot machine 42 or table game, or wager, play or attempt to play an 43 interactive game or participate in casino simulcasting at a 44 licensed facility, including a nonprimary location. 45 (13.2) It shall be unlawful to allow a person under 21 46 years of age to open, maintain or use in any way an 47 interactive gaming account. Any interactive gaming 48 certificate holder, interactive gaming licensee or employee 49 of an interactive gaming certificate holder or interactive SO gaming licensee who knowingly allows a person under 21 years 51 of age to open, maintain or use an interactive gaming account

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1 shall be subject to the penalty set forth in this section, 2 except that the establishment of all of the following facts 3 by an interactive gaming certificate holder, interactive 4 gaming licensee or employee of an interactive gaming 5 certificate holder or interactive gaming licensee shall 6 constitute a defense to any regulatory action by the board or 7 the penalty authorized under this section: a (i) the underage person falsely represented that he 9 was of the permitted 21 years of age in the application

10 for an interactive gaming account; and 11 (ii) the establishment of the interactive gaming 12 account was made in good faith reliance upon such 13 representation and in the reasonable belief that the 14 underage person was 21 years of age. 15 * * * 16 (15) It shall be unlawful for a licensed gaming entity 17 to require a wager to be greater than the stated minimum 18 wager or less than the stated maximum wager. However, a wager 19 made by a player and not rejected by a licensed gaming entity 20 prior to commencement of play shall be treated as a valid 21 wager. A wager accepted by a dealer or through an authorized 22 interactive game shall be paid or lost in its entirety in 23 accordance with the rules of the game, notwithstanding that 24 the wager exceeded the current table maximum wager Q!:__

25 authorized interactive game wager or was lower than the 26 current table minimum wager or minimum interactive game 27 wager. 28 * * * 29 (17) It shall be unlawful for an individual to claim, 30 collect or take, or attempt to claim, collect or take, money 31 or anything of value in or from a slot machine, including 32 from slot machines at a nonprimary location, gaming table or 33 other table game device, interactive game or interactive 34 gaming device or from casino simulcasting operations with the 35 intent to defraud, or to claim, collect or take an amount 36 greater than the amount won, or to manipulate with the intent 37 to cheat, any component of any slot machine, including slot 38 machines at nonprimary locations, table game or table game 39 device, interactive game or interactive gaming device or 40 casino simulcasting operations in a manner contrary to the 41 designed and normal operational purpose. 42 (18) Notwithstanding any other provision of law, it 43 shall be unlawful for an individual driving or in charge of a 44 motor vehicle to permit a child under 14 years of age to 45 remain unattended in the vehicle if the vehicle is located on 46 property owned, leased or controlled by a licensed gaming 47 entity or its affiliate, intermediary, subsidiary or holding 48 company. In addition to the penalties in subsection (b), the 49 individual shall be subject to exclusion or ejection from SO licensed facilities under sections 1514 (relating to 51 regulation requiring exclusion, ejection or denial of access

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l of certain persons) and 1515 (relating to repeat offenders 2 excludable from licensed gaming facility) . Notwithstanding 3 any of the provisions of 18 Pa.C.S. Ch. 91 (relating to 4 criminal history record information}, the investigating 5 officer in the jurisdiction in which the vehicle is located 6 shall be responsible for providing written notice of the 7 violation within 48 hours to the director of the county 8 children and youth service agency of the county where the 9 violation occurred . The notice shall contain:

10 (i) The name of the individual charged under this 11 section. 12 (ii) The address or addresses at which the 13 individual resides. 14 (iii) The name of the child or children left 15 unattended. 16 (b) Criminal penalties and fines.--17 (1) (i) A person that conunits a first offense in 18 violation of 18 Pa.C.S. § 4902, 4903 or 4904 in 19 connection with providing information or making any 20 statement, whether written or oral, to the board, the 21 bureau, the department, the Pennsylvania State Police, 22 the Off ice of Attorney General or a district attorney as 23 required by this part conunits an offense to be graded in 24 accordance with the applicable section violated. A person 25 that is convicted of a second or subsequent violation of 26 18 Pa.c . s. § 4902, 4903 or 4904 in connection with 27 providing information or making any statement, whether 28 written or oral, to the board, the bureau , the 29 department, the Pennsylvania State Police, the Office of 30 Attorney General or a district attorney as required by 31 this part conunits a felony of the second degree . 32 (ii) A person that violates subsection (a) (2), (3) 33 and (4) through (12) or (17) commits a misdemeanor of the 34 first degree. A person that is convicted of a second or 35 subsequent violation of subsection (a) (2 ) , (3) and (4) 36 through (12) or (17) commits a felony of the second 37 degree. 38 (2} (i) For a first violation of subsection (a) (1) 39 through (12) or (17), a person shall be sentenced to pay 40 a fine of: 41 (A) not less than $75,000 nor more than $150,000 42 if the person is an individual; 43 (B} not less than $300,000 nor more than 44 $600,000 if the person is a licensed gaming entity~ 45 an interactive gaming licensee; or 46 (C} not less than $150 , 000 nor more than 47 $300 , 000 if the person is a licensed manufacturer or 48 supplier. 49 (ii) For a second or subsequent violation of 50 subsection (a} (l}, (2). (3) and (4} through (12) or (17), 51 a person shall be sentenced to pay a fine of:

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l 2 3 4 5

(A) not less than $150,000 nor more than $300,000 if the person is an individual;

(B) not less than $600,000 nor more than $1,200,000 if the person is a licensed gaming entity; or

6 (C} not less than $300,000 nor more than 7 $600,000 if the person is a licensed manufacturer or 8 supplier . 9 (2.1) A person that commits an offense in violation of

10 subsection (a) (3.1) or (3.2) commits a felony and, upon 11 conviction, shall be sentenced to pay a fine of not less than 12 $500,000 nor more than $1.000,000. A person that is convicted 13 of a second or subsequent violation of subsection (a) (3.1) 14 commits a felony of the first degree and shall be sentenced 15 to pay a fine of not less than $1,000,000 nor more than 16 $2,500,000. 17 (3) An individual who commits an offense in violation of 18 subsection {a) (13) [or].L. (13.1) or (13.2) commits a 19 nongambling sununary offense and upon conviction of a first 20 offense shall be sentenced to pay a fine of not less than 21 $200 nor more than $1,000. An individual that is convicted of 22 a second or subsequent offense under subsection {a) (13) [or)~

23 (13 . 1) or (13.2) shall be sentenced to pay a fine of not less 24 than $500 nor more than $1,500. In addition to the fine 25 imposed, an individual convicted of an offense under 26 subsection {a) (13) [or].L. (13.1) or (13.2) may be sentenced to 27 perform a period of community service not to exceed 40 hours. 28 (3.1) Notwithstanding paragraph (3), whenever an 29 individual is convicted of a second or subsequent offense 30 under subsection (a) (13) or (13 . 1), the court, including a 31 court not of record if it is exercising jurisdiction pursuant 32 to 42 Pa.c.s. § 1515(a) (relating to jurisdiction and venue), 33 shall order the operating privileges of the individual 34 suspended. A copy of the court order shall be transmitted to 35 the Department of Transportation. 36 (3 . 2} When the department suspends the operating 37 privilege of a person under paragraph (3 . 1), the duration of 38 the suspension shall be as follows: 39 {i) For a first offense, a period of 90 days from 40 the date of suspension. 41 (ii) For a second offense, a period of one year from 42 the date of suspension. 43 (iii) For a third offense, and anv offense 44 thereafter, a period of two years from the date of 45 suspension. Any multiple sentences imposed shall be 46 served consecutively. 47 Reinstatement of operating privilege shall be governed by 75 48 Pa.c.s. § 1545 (relating to restoration of operating 49 privilege}. so * * * 51 (5) An individual who commits an offense in violation of

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1 subsection (a) (18) commits a misdemeanor of the third degree 2 for the first offense. A person that is convicted of a second 3 or subsequent violation of subsection (a) (18) conunits a 4 misdemeanor of the second degree. 5 (c) Board-imposed administrative sanctions.--6 (1) In addition to any other penalty authorized by law, 7 the board may impose without limitation the following 8 sanctions upon any licensee or permittee: 9 * * *

10 (x) Assess a fine for failure to reoort a violation 11 under subsection (a) (18), of which the licensed gaming 12 entity knew or should have known, to the appropriate law 13 enforcement authority. The amount of the fine shall be 14 not less than $75,000 nor more than $150,000 for a first 15 violation of this subparagraph, and not less than 16 $150,000 nor more than $300,000 for a second or 17 subsequent violation of this subparagraph. 18 * * * 19 Section 15.1. Title 4 is amended by adding a section to 20 read: 21 § 1521.1. Casino liquor license. 22 (a) Application.--Notwithstandinq section 1521 (relating to 23 liquor license at licensed facilities) or any provision of law 24 or regulation to the contrary, a slot machine licensee holding a 25 restaurant liquor or eating place retail dispenser license under 26 the act of April 12, 1951 (P.L.90, No.21), known as the Liquor 27 Code, may apply to the Pennsylvania Liquor Control Board for a 28 casino liquor license. The Pennsylvania Liquor Control Board may 29 issue a casino liquor license to a slot machine licensee for use 30 at its licensed facility in accordance with this section. 31 (b) Fees.--Each application for a casino license under this 32 section shall be accompanied by a fee of $1,000,000. 33 (c) Renewal.--34 (1) The license must be renewed on an annual basis. 35 (2) For the first four years after the initial issue of 36 the license, the license shal l be subject to an annual 37 renewal fee of $1,000,000 . 38 (3) Thereafter, the licensee shall be subject to an 39 annual renewal fee of $25 0 ,000 . 40 (4) All fees collected or received by the Pennsylvania 41 Liquor Control Board under this subsection shall be paid into 42 the State Treasury through the Department of Revenue for 43 deposit into the General Fund. 44 (d) Disposition of restaurant liquor or eating place retail 45 dispenser license.--46 (1) An applicant under this section that currently holds 47 a restaurant liquor or eating place retail dispenser license 48 issued under the authority of the Liquor Code may continue to 49 utilize that license until such time as the casino liquor 50 license is issued by the Pennsylvania Liquor Control Board . 51 Upon the issuance of a license under this section, the

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1 applicant must surrender the restaurant liquor or eating 2 place retail dispenser license to the Pennsylvania Liquor 3 Control Board. 4 (2) An applicant under this section that currently holds 5 a restaurant liquor or eating place retail dispenser license 6 purchased through private sale may continue to utilize that 7 license until such time as the casino liquor license is a issued by the Pennsylvania Liquor Control Board. Upon 9 issuance of a license under this section, the applicant mav

10 sell the previously purchased restaurant liquor or eating 11 place retail dispenser license. 12 (e) Hours of operation.--Notwithstanding any other provision 13 of law to the contrary. a holder of a casino liquor license may 14 sell or serve liquor and malt or brewed beverages 24 hours a 15 day, seven days a week. 16 (f) Transfers.--Licenses issued under this section are 17 nontransferable, provided that nothing in this subsection shall 18 preclude a transfer of ownership of a casino liquor license to 19 another eligible person to be used at the same licensed 20 facility. 21 (g) Expiration.--Licenses under this section shall expire 22 under the following circumstances: 23 (1) revocation by an administrative law judge under 24 section 471 of the Liquor Code; 25 (2) nonrenewal by the Pennsylvania Liquor Control Board 26 under section 470 of the Liquor Code; 27 (3) nonrenewal of the license by the slot machine 28 licensee; or 29 (4) upon request by the slot machine licensee. 30 (h) New applicant.--The Pennsylvania Liquor Control Board 31 may issue a license under this section at any time to a new 32 applicant even if the previous license had: 33 (1) been revoked by an administrative law judge under 34 section 471 of the Liquor Code; 35 (2} not been renewed by the Pennsylvania Liquor Control 36 Board under section 470 of the Liquor Code; 37 (3) not been renewed by the slot machine licensee; or 38 (4) expired upon request by the slot machine licensee. 39 (i) Restrictions and privileges.--Licenses issued under this 40 section are subject to the following additional restrictions and 41 privileges: 42 (1) Sales may be made at any time the facility is open 43 to the public. 44 (2) Liquor or malt or brewed beverages mav be 45 transported and consumed off the gaming floor so long as it 46 remains within the premises of the licensed facility. 47 (3) Sales of malt or brewed beverages for off-premises 48 consumption are prohibited. 49 (4) In addition to the provisions of section 493(24) (ii) 50 of the Liquor Code, the holder of a casino license may give 51 liquor and malt or brewed beverages free of charge to any

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1 person attending an invitation-only event held anywhere on 2 the premises of the licensed facility . 3 (5) Licenses issued under this section shall not be 4 subject to : 5 (i) the proximity provisions of sections 402 and 404 6 of the Liquor Code; 7 (ii) the restrictions on discount pricing practices 8 set forth in section 406(g) of the Liquor Code; 9 (iii) the quota restrictions of section 461 of the

10 Liquor Code; 11 (iv) the provisions of section 493(10) of the Liquor 12 Code, except as it relates to lewd, immoral or improper 13 entertainment; 14 (v) the prohibition against minors frequenting as 15 described in section 493(14) of the Liquor Code; 16 (vi) the cost and total display area limitations of 17 section 493(20) (i) of the Liquor Code; 18 (vii) the restrictions on events, tournaments or 19 contests set forth in 40 Pa. Code § 5.32 (relating to 20 restrictions/exceptions); and 21 (viii) the restrictions on the awarding of trophies, 22 prizes or premiums set forth in 40 Pa. Code § 5.32 . 23 (6) The authorization to sell or serve liquor and malt 24 or brewed beverages by a holder of a casino liquor license 25 pursuant to subsection (e) shall not apply to the operation 26 of slot machines at a nonprimary location or at a qualified 27 airport . 28 (j) Multiple licenses.--More than one license issued by the 29 Pennsylvania Liquor Control Board may be in effect at a licensed 30 facility at any one time . However, no more than one license 31 issued under this section shall be in effect at any specific 32 location within the premises of a licensed facility at the same 33 time. 34 Section 16 . Section 1901(a) of Title 4 is amended by adding 35 a paragraph to read : 36 § 1901 . Appropriations . 37 (a) Appropriation to board.--38 * * * 39 (3) The sum of $5,000,000 is hereby appropriated from 40 the State Gaming Fund to the Pennsylvania Gaming Control 41 Board for salaries, wages and all necessary expenses for the 42 proper operation and administration of the board for the 43 activities authorized under this act. This appropriation 44 shall be a supplemental appropriation for fiscal year 2015-45 2016 and shall be in addition to the appropriation contained 46 in the act of July 2, 2015 (P .L. No. ) , known as the 47 Gaming Control Appropriation Act of 2015. 48 * * * 49 Section 17. The amendment of 4 Pa . C. S. § 1307 in the act of so January 7, 2010 (P.L.1, No.1), entitled "An act amending Title 4 51 (Amusements) of the Pennsylvania Consolidated Statutes, making

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1 extensive revisions to provisions on gaming, in the areas of 2 legislative intent, definitions, the Pennsylvania Gaming Control 3 Board, applicability of other statutes, powers of the board, 4 code of conduct, expenses of regulatory agencies, licensed 5 gaming entity application appeals from board, license or permit 6 application hearing process and public hearings, board minutes 7 and records, regulatory authority, collection of fees and fines, a slot machine license fee, number of slot machines, reports of 9 board, diversity goals of board, license or permit prohibition,

10 specific authority to suspend slot machine license, Category 2 11 slot machine license, Category 3 slot machine license, number of 12 slot machine licenses, applications for license or permit, slot 13 machine license application, slot machine license application 14 character requirements, supplier licenses, manufacturer 15 licenses, gaming service provider, occupation permit 16 application, alternative manufacturer licensing standards, 17 alternative supplier licensing standards, additional licenses 18 and permits and approval of agreements, license renewals, change 19 in ownership or control of slot machine licensee, nonportability 20 of slot machine license, appointment of trustee, table games, 21 slot machine licensee deposits, gross terminal revenue 22 deductions, itemized budget reporting, establishment of State 23 Gaming Fund and net slot machine revenue distribution, 24 distributions from Pennsylvania Race Horse Development Fund, 25 Pennsylvania Gaming Economic Development and Tourism Fund, 26 transfers from State Gaming Fund, responsibility and authority 27 of Department of Revenue, wagering on credit, eminent domain 28 authority, compulsive and problem gambling program, drug and 29 alcohol treatment, labor hiring preferences, declaration of 30 exemption from Federal laws prohibiting slot machines, financial 31 and employment interests, additional restrictions, political 32 influence, regulation requiring exclusion of certain persons, 33 prosecutorial and adjudicative functions, investigations and 34 enforcement, conduct of public officials and employees, 35 prohibited acts and penalties, report of suspicious 36 transactions, additional authority, applicability of Clean 37 Indoor Air Act, liquor licenses at licensed facilities, 38 interception of oral communications, electronic funds transfer 39 terminals, junkets, gaming schools, appropriations and 40 Commonwealth Financing Authority; and making related repeals," 41 shall take effect on January 1, 2016, if all Category 3 licensed 42 facilities authorized by 4 Pa.c.s. Pt. II before the effective 43 date of this section have commenced the operation of slot 44 machines. 45 Section 18. Repeals are as follows: 46 (1) The General Assembly finds that the repeal under 47 paragraph (2) is necessary to effectuate this act. 48 (2) Section 21(2) of the act of January 7, 2010 (P.L.1, 49 No.l), entitled "An act amending Title 4 (Amusements) of the 50 Pennsylvania Consolidated Statutes, making extensive 51 revisions to provisions on gaming, in the areas of

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1 legislative intent, definitions, the Pennsylvania Gaming 2 Control Board, applicability of other statutes, powers of the 3 board, code of conduct, expenses of regulatory agencies, 4 licensed gaming entity application appeals from board, 5 license or permit application hearing process and public 6 hearings, board minutes and records, regulatory authority, 7 collection of fees and fines, slot machine license fee, 8 number of slot machines, reports of board, diversity goals of 9 board, license or permit prohibition, specific authority to

10 suspend slot machine license, Category 2 slot machine 11 license, Category 3 slot machine license, number of slot 12 machine licenses, applications for license or permit, slot 13 machine license application, slot machine license application 14 character requirements, supplier licenses, manufacturer 15 licenses, gaming service provider, occupation permit 16 application, alternative manufacturer licensing standards, 17 alternative supplier licensing standards, additional licenses 18 and permits and approval of agreements, license renewals, 19 change in ownership or control of slot machine licensee, 20 nonportability of slot machine license, appointment of 21 trustee, table games, slot machine licensee deposits, gross 22 terminal revenue deductions, itemized budget reporting, 23 establishment of State Gaming Fund and net slot machine 24 revenue distribution, distributions from Pennsylvania Race 25 Horse Development Fund, Pennsylvania Gaming Economic 26 Development and Tourism Fund, transfers from State Gaming 27 Fund, responsibility and authority of Department of Revenue, 28 wagering on credit, eminent domain authority, compulsive and 29 problem gambling program, drug and alcohol treatment, labor 30 hiring preferences, declaration of exemption from Federal 31 laws prohibiting slot machines, financial and employment 32 interests, additional restrictions, political influence, 33 regulation requiring exclusion of certain persons, 34 prosecutorial and adjudicative functions, investigations and 35 enforcement, conduct of public officials and employees, 36 prohibited acts and penalties, report of suspicious 37 transactions, additional authority, applicability of Clean 38 Indoor Air Act, liquor licenses at licensed facilities, 39 interception of oral communications, electronic funds 40 transfer terminals, junkets, gaming schools, appropriations 41 and Commonwealth Financing Authority; and making related 42 repeals," is repealed. 43 Section 19. This act shall take effect immediately.

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